In 2012 I deepened my general theory of the true stability conditions in a non-command society. I strived to emphasize the fundamental difference between two states of stability.
-The neo-classical mainstream one inherited from the General
Eternal present, no role for time.
No role for money creation by the State
No role for the State
No future different from the present
- The Dynamic or existential one
Society is always projected towards the unknowable future.
It invents its future out of the leading role of State money creation.
Money is the energy propelling society towards the future.
The target is to imagine the maximum welfare possible, thereby full employment is
Crisis are the rule against which the State is to fight by money creation.
From this General Theory I derived a fundamental critique
of the European Monetary Union of which the extraordinary nature of the
Euro Crisis is the perfect child. It happened that my "prophecy"(in my
1999 paper "the Euro a false money against the real economy") was right.
There is only one solution, to leave the Euro, to denounce the whole "iron-heel"
of the fiscal pacts.
I defined the conditions allowing that for a country like Italy this negation of an absurd new order could be successful.
Meanwhile I started to generalize again the circuit approach by working on the theory of exchange rates.
All this was undertaken thanks to my participation to conferences in Boston at the Eastern Economic Association on the rehabilitation of the New Deal, in Toronto on central banking after the crisis, in three conferences in Italy organized by MMT-Italy under the leadership of Paolo Barnard, in Zagreb and in Dijon.
I am now working:
1/ On a Paper with Slim Thabet on Keynes and the crisis for the new "Review of Keynesian Economics" (ROKE) co-edited by Louis-Philippe Rochon, Thomas Palley and Matias Vernango, of which I am one of the patrons.
2/ On a paper on the ultimate meaning of endogeneity of money.
3/ On my collected essays under the general title : "The State, Money and Time; Essays on the General Theory of the Monetary Circuit".