ABSTRACT
The authors of this chapter focus on identifying the premises necessary for the stable, sustainable, and harmonious development of the economies based on the very best features of capitalism – economic freedom, entrepreneurship, and cooperation of individual entities. While looking for the key determinants of sustainable development, they also point to imperfections that are an inherent feature of the free-market economies, such as repeated turbulences of their financial systems, the separation of the financial system from the real zone or a change in the paradigm of conducting monetary policy, limited trust in the central banks, and negative feedback between monetary and macro-prudential policy. In this context, the authors also discuss the negative consequences of globalisation, including the flow of financial and human capital from economically weaker countries to stronger ones. As a remedy for the identified problems of capitalism, they point to a return to its roots (backed by state policy mix), that is, cultivating the autonomous development of enterprises, focused on finding individual solutions to civilisation, and economic and technological challenges.
