ABSTRACT
Adam Smith provides a compelling account of how markets work to balance the needs of consumers with the economics of production. The problem with economic growth is that it is too complex for any simplistic theory to comprehend. The recent history of monetary policy around the world certainly in the United States, UK, Europe and Australia has been problematic, to say the least. The economic slowdown and recession of 2008/2009 occurred because of, rather than despite, monetary policy. The biggest problem aside from the fact that it is impossible to achieve an equilibrium in dynamic economies is the fear of inflation. Modern economics is now a strange amalgam of neo-Keynesianism, in the form of increased government expenditures, and Monetarism in the manipulation of inflation against growth by means of setting interest rates. The pursuit of some sort of equilibrium in economies is fool's gold. The long wave business cycles are an inbuilt feature of capitalism.
