Monetary system dynamics
International Federation of Automatic Control (IFAC)
Modern economies are prone to persistent increases in debt and recurrent financial crises. We present a systems and control perspective on two hypotheses which aim to explain these dynamics: 1. the growth imperative - which investigates the conditions under which capitalist economies necessarily exhibit growing debt; and 2. the financial instability hypothesis - which proposes mechanisms underlying the tendency of capitalist economies to experience financial crises.
This research was conducted while the author was the Henslow research fellow at Fitzwilliam College, University of Cambridge, U.K., supported by the Cambridge Philosophical Society, http://www.cambridgephilosophicalsociety.org.
This is the author accepted manuscript. The final version is available from IFAC
IFAC 2017 World Congress: 20th World Congress of the International Federation of Automatic Control, Toulouse, France, 9-14 July 2017