| Abstract: |
The paper starts by reviewing a recent contribution on long-waves, in order to
recall the essential points of a theory that, better than any other, is able
to explain the long term development of capitalist economies. Considering that
the present technological revolution in ICT is part of the broad phenomenon of
a new long wave, it follows that the main focus of economic policy should be
to support the diffusion of the new technological style and to favour the
institutional changes required by such an objective. On the basis of a
selective view of what is deemed crucial to foster the full implementation of
the new long wave, four broad guidelines are suggested: (i) a Keynesian policy
for demand; (ii) a policy to re-establish the primacy of productive capital
through systematic concerted open market operations to regulate liquidity in
the financial markets; (iii) a reconstruction of the employment relationship
that, while taking into consideration the requirements of the new
technological paradigm, preserves the essential features of the “European
social model”; a targeted flexibility of labour, that contrasts with the
all-out market flexibility that results from the neoclassical theory, is also
suggested; (iv) a regime for intellectual property rights that avoids the
drawbacks – both ethical and economic – of current US practices. |