Longrun Dynamics

When the first edition of Longrun Dynamics was completed for publication in 1997, economic experts were warning that the greatest danger facing the Western world was rampant inflation. They recommended tight monetary control by central banks to reduce inflation to zero, and tight fiscal control by governments to transform budget deficits into surpluses. This book claims they were tragically mistaken. The general dynamic theory developed in Longrun Dynamics by Graeme Snooks shows why these policies will not work. It is also argued that, if the West continues to enforce neoliberal policies, there certainly will be a global crisis, but that it will be one of deflation rather than inflation. This is demonstrated by Snooks through his ground-breaking dynamic-strategy theory - centred on the concept of strategic demand - which shows that inflation is essential to longrun growth. It receives empirical support from his discovery of the growth/inflation curve. Today there is growing recognition of the dangers of deflation, but inflation is still regarded as the 'real enemy', and neoliberal policies are still universally employed. Global crisis, therefore, remains a dangerous possibility.