The Other Half of Macroeconomics and Three Stages of Economic Development
Richard C. Koo
Nomura Research Institute
Please cite the paper as:
Richard C. Koo, (2016), The Other Half of Macroeconomics and Three Stages of Economic Development, World Economics Association (WEA) Conferences, No. 1 2016, Capital Accumulation, Production and Employment:, 15th May to 15th July 2016
This paper has been included in the publication
“Capital and Justice”
The discipline of macro-economics, which was started in the late 1940s, covered in its short history only half of the total phases an actual economy may encounter. The overlooked other-half, however, contained many key determinants of economic growth that have been either taken for granted or conveniently assumed away in traditional economics. Considering this background, the purpose of this paper is to elucidate what was missing in economics all along and what changes are needed to make the profession relevant for the society again. In order to understand how we got from the centuries of economic stagnation to where we are today where economic growth is taken for granted, we need to review certain basic facts about the economy and how it operates.