While the
IMF’s research team has for many years chipped away at mainstream
economic thinking, a short, accessible paper makes an even more
frontal challenge. It’s caused such a stir that the Financial Times
featured it on its front page. We’ve embedded it at the end of this
post and encourage you to read it and circulate it.
The article
cheekily flags the infamous case of the Chicago Boys, Milton
Friedman’s followers in Pinochet’s Chile, as having been falsely
touted as a success. If anything, the authors are too polite in
describing what a train wreck resulted. A plutocratic land grab and
speculation-fueled bubble led quickly to a depression, forcing
Pinochet to implement Keynesian policies, as well as rolling back
labor “reforms,” to get the economy back on its feet.
The papers
describes three ways in which neoliberal reforms do more harm than
good.
Details:
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