Alan Fortuny Sicart

Key features of the theory the amount of factors depend on the interplay between the aggregate demand and aggregate supply the long run is only the outcome of business cycles in keynessian theories the level of investments explains the amount of savings investments here are funded by loans via money creation. The monetary sector play a crucial role in economic growth. ratios of substitution between factors is fixed and limited in the short run by technology State of research Increases is labor productivity enforces economic growth to avoid unemployment, which is a societal goal The secular stagnation is explained as the combination of the lower return on capital and the lower consumption rate when high incomes are achieved Zero growth can be achieve via low investments, equal to the depreciation rate Most of the research confirm that zero growth is compatible with positive interest rates and suffciently high taxes Authors agree that capital accumulation must be stopped Some authors cal...

I am summarising here one of the most beautiful and useful books on economics, ecology and philosophy that I have ever read. I have written about this book before, but given the importance of the principles it mentions for the work I am currently doing, it is more than worth taking another deep look into this treasure: https://sacred-economics.com/ I can only hope that every single economics, business and political science programme has this book as a reference, because people will benefit massively from it. Whether you are in activism, policy, research, industry, teaching or just curious, this book will challenge your view of economics, money and civilisation. Motivation Those who want to create a healthier, fairer and simply put more beautiful world have a hard time. Our system seems to make it much easier to exploit and monetise every single service than to protect the commons. Propaganda has managed to turn us into consumers rather than citizens by blaming us for the same addic...

Solow stated in 2008 that there is no reason for capitalism to exist in a steady state, and this is the main conclusion after we analyse the neoclassical literature. There are multiple conditions where economies could function without growth, and such economies almost always have better environmental state than those that grow. Those theories also called supply side economics, state unanomously that the condition for stable output and emissions is a constant supply of effective (actual input * productivity) input remains constant.  That could be done by either reducing the input in line to the technological progress on that input or redirecting input usage and technology to the clean ones (labor instead of resources, and renewable sectors instead of fossil fuel based).  To achieve that, regulation is needed. A cap on input use have to be in place for example for resource use or taxes on the dirty sectors will deviate production to cleaner sectors that are more intensive in lab...

  Dasgupta-Heal-Solow-Stigliz Model (1974) The following model adds limited natural resources to a model similar to the one developed by Sollow. The stock of the non-renewable resource is depleted at the following rate and overall lower than the initial stock: These model assume constant susbtitution elasticities between the factors K,L, R. As Resource availability is strictly decaying, economic growth require significant amounts of factor substitution . So significant as natural resources need to become inesential in the production process.  Another alternative of the model is resource augmenting technology, where that leads to an increase in effective natural resource avaialability bigger than the decline of the resource stock . The third option to explain long term economic growth is by permanently increasing the other factors, capital and labor. That would be easier the higher the productivity of those factors is. Green Solow Model with abatement The green Solow model kee...