A költségvetési egyensúlyszemlélet kritikája

(egyen)súlytalanság

(egyen)súlytalanság


The tyranny of numbers (2. part)

The uncontrolled philosophy of the inflation policy

2019. július 10. - sadani

Laszlo Naray, Istvan Zsadanyi:

Published: 02.23. 2015. (Napi Gazdaság printed, online)

...there is no such thing as philosophy-free science; there is only science whose philosophical baggage is taken on board without examination." (Daniel C. Dennett)

Let us now check the philosophical baggage we took on board ( without prior examination in 1992) when we all agreed to use the same inflation target numbers, as decreed by the Maastricht Criteria.

good_inflation.png

In our first article, we called Maastricht criteria (MC) " The tyranny of numbers".  International institutions built on these criteria (i.e. coerced fiscal convergence, excessive deficit procedure  and the adapted market and credit rating rituals) are forcing states to raise taxes and reduce expenditure in order to reduce their GDP-proportionate deficit exactly within  those given time-lines ,  when the spontaneous market mechanisms alone are unable to generate sufficient incomes - although the IMF itself showed in a comprehensive study in 2012 that 1 % austerity on average resulted in a 1,3 % decrease in the GDP.

What could be the reason why the budget balance is considered to be a vital issue in spite of the proven fact that the austerity logic has created a great deal of insufficient damage? Why are the central banks not allowed to give money to those governments in need? And why is it bad if public debt exceeds 60 % of GDP, while private debt is over 200 % of GDP in more developed, well-functioning countries? Didn't we mix the tool with the goal? What is the goal at all?

Tovább

The tyranny of (Maastricht) numbers (1. part)

The fiscal creature turned against its creators

László Náray, Istvan Zsadanyi:

Published: 02.16. 2015. (Napi Gazdaság printed, online)

 “Ignorance is a necessary condition for many excellent things. The childish joy of seeing what Santa Claus brought for Christmas is a species of joy that must soon be extinguished in each child by the loss of ignorance. When that child grows up, she can transmit that joy to her own children, but she must also recognize a time when it has outlived its value.” (Daniel C.  Dennett)

 Is it a conscious, deliberate decision that governments want to cut budget deficits and public debt proportional to GDP or is it a kind of ignorance? Is there any sense to reach the budgetary equilibrium or is it like a rituality, when we try to make painful sacrifices in order to get some chocolate from Santa Claus?

tryranny_of_numbs.png

 

Tovább
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