Magic Money Tree and Other Economic Tales

Politics and economics are at odds, with politicians using short-term economic gains to ensure electoral success, leading to macroeconomic disaster. Forni argues that using the state budget, trade policy, and monetary policy to prop up labor markets and the wider economy can only result in longer recessions and economic downturns, leading to painful austerity measures. He looks at unsustainable economic policies that have been implemented in parts of the world when the economic realities would recommend a different and more prudent economic course.

Format: Paperback / softback
Length: 184 pages
Publication date: 22 July 2021
Publisher: Agenda Publishing

This captivating and thought-provoking exploration delves into the intricate interplay between economics and politics, shedding light on the pervasive tendency of economic policy-making to be driven by political motives and to disregard the fundamental economic realities. Lorenzo Forni compellingly argues that pursuing short-term economic gains to secure electoral success inevitably leads to catastrophic macroeconomic outcomes. He cautions against using the state budget, trade policy, and monetary policy as tools to manipulate labor markets and the broader economy solely for the purpose of boosting voter approval ratings, as this approach can only exacerbate longer recessions and economic downturns. Consequently, it necessitates the implementation of painful austerity measures to restore economic balance.

Forni takes a critical eye to numerous unsustainable economic policies that have been adopted in various parts of the world, despite the glaring economic realities that suggest a different and more prudent economic course. He emphasizes the absence of a magical money tree, underscoring the need for a realistic and pragmatic approach to economic decision-making. Through his insightful analysis, Forni challenges us to confront the underlying political motivations that often overshadow sound economic principles and urges us to prioritize long-term economic stability and prosperity.

Weight: 224g
Dimension: 132 x 196 x 18 (mm)
ISBN-13: 9781788213653