Thursday, November 25, 2010

Market Fundamentalism

Interesting thing about the Washington Consensus and market fundamentalism is that only on economist would see the world that way. Anyone who looks an the world from the view of a political scientist, sociologist, historian, journalist, etc. knows the markets are messy.

A good example of this was the mess of the post-soviet breakup of state companies. The insiders knew how to game the system and became billionaires. The people were pretty much screwed, and the economy completely screwed up to the point of hyper-inflation and ruble devaluation (ruble went from around 6 to the US Dollar to the low 20s).

So market fundamentalism not so much.

Still reading "Globalization and its Discontents" by Joseph Stiglitz, but its interesting how international instituations have used dogma to screw up economies. Will come back to this topic.