The economy does not lie

The title of this article is not mine, but a translation of the book, invented and written by Guy Sorman.

Great title.

Perhaps for the title it is one of those books I would like to read, a lot on the to-do list …

Guy Sorman writes about economic progress and stresses the importance of making the right decisions in economic policy. Or economic policy.

… Sorman explains why there is “only one right economy: one that works.” (1) the one that worked took us into a crisis recently, but others didn’t work either:

The socialist economy has sunk because “under socialism the state pretends to pay the workers, and the workers pretend to work.”

It analyzes which economies operate and which do not or only “sometimes” and does so by examining the economies of different countries.

There are different types of economic policy, and one of them is intervention: “there is something worse than avoiding reality; public intervention at the wrong time can sink the economy into depression” The cause of error is well known: “during a crisis, magical thinking seems to re-emerge and erase rationality; “.

This is just information on the back of the book.

And yet I would like to read this book, although I wonder if the main statement of the book – working economies – corresponds to the modern understanding of this post-crisis period. I would like to know how the financial markets – which are always right – fit into this picture. And if economies don’t lie, who?

(1) -[http://documentos.fundacionfaes.info/en/documentos/ultimos/show/00812]

HJB