Péter Farkas on the ongoing economic crisis

Economist Péter Farkas wonders in the left-liberal daily Népszabadság how long the global economic crisis will last: "Analysts are now more upbeat. While the globl economy was still in a nosedive at the start of the year, it has been able to recover somewhat in recent months. But how long will it take for it to recover altogether, and when will things start looking up? ... This is simply impossible to say at present. ... Looking back at history we can see that there can be no talk of a quick recovery. Taking a good look at the global crises of the past we see that in many countries the crisis period lasted two years on average. ... We are now witnessing not only a financial and overproduction crisis, but also a kind of nodal crisis of global capitalism, meaning that capitalism will certainly change after the crisis. Three scenarios are imaginable for the post-crisis era: 1. If a worsening of the crisis can be avoided by re-inflating the economic balloon, a slightly modified neoliberal model can be expected. ... 2. Should the crisis worsen and the global economy collapse, a Keynesian model would result. ... 3. The third model could only occur on the long term, after the end of the social crisis which accompanies the economic one: a model of economic and social sustainability."

» full article (external link, Hungarian)
More from the press review on the subject » Economic Policy, » Global