The Shaping of Socio-Economic Crisis: Societal Change and Theoretical Future

Part 1 of this chapter singles out several of the more important socioeconomic and political developments which have made inflation endemic in modern capitalist societies and which also limit the ability of the welfare state to regulate inflation and at the same time prevent economic stagnation. Part 2 goes on to suggest some of the reasons that contemporary economic theory and policy are unable to deal adequately with the current crisis. We go on to indicate several of the requirements for a new framework.