Money, Markets and the Organic model of Economics

Abstract

Conventional courses in economics present a fantasy world of theory that withstands the rigour of mathematics, but has little or nothing to do with reality. In Realonomics, Karim El-Ayoubi subjects neo-classical economics (NCE) to forensic scrutiny [1]. He argues that NCE is nonsensical. The consequences are drastic. Graduates entering the ranks of central banks, governments, and bureaucracies “have been trained to believe something that, in many cases, is the precise opposite of the truth, and so they end up making bad policies that hurt all of us”. He provides the evidence to support his attack. His alternative paradigm, however, is based on a revised approach to creating money, and to the banking system, which is problematic.