Research Article
The Lasting Resilience of a Principle That Seems Stainless
Giovanni Antonio COSSIGAThe hope or the illusion that economic science has the tools to ensure a growth path for the economic development of states and continents, seem to have entered a grey area. Not only and not so much for the today’s uncertainties, market anomalies and development asynchrony. But above all for the unsolved issues raised by the monetary and fiscal policy, which allowed to mitigate the downward pressure of the 2008-2010 financial crisis, though not without a price to pay. On the other hand, some concerns are raised by the fact that ten years after the serious crisis we are still dealing with the unsolved issue of a too low inflation. The imminent danger is that the economy instability has not been removed, also because of the support interventions of the monetary and fiscal policy. The risk of a new speculative event and recurrent financial crises could therefore hit again the global economy. Unfortunately, this hypothesis it isn’t such a remote risk. The unrelenting development of public and private indebtedness at a global level is regrettably a warning about the economy world, which is chasing an incongruous relationship between weak growth and excess credit. Thus, a sort of debt trap is envisaged, according to which the continuation of the weakening development is linked to the unlimited growth of credit. In other words, we are in the resumption anteroom of the paradigm speculation-financial crisis. An evolution that we can interpret as the humanity continuous attempt to live beyond the available natural resources, which are not unlimited and should be preserved for the future generations. Since there is the risk to renew the speculation-crisis paradigm, it would be better to reflect about the recession and the conjuncture cycle, which are not always enemies. Instead, they have the objective of rebalancing the unstable economy to bring it back in the stability area and within the linear economy growth, far from the conjuncture cycle. Denial can be painful. Unfortunately, the alternative is a potential laissez-faire of the unstable development that can start new speculative crises to correct the instability, yet with highly serious social repercussions