Instability of the current economic system from the perspective of the Austrian School

Abstract

The world economy poses challenges that show the complexity of its interactions. This study analyzes the instability of the current economic system from the perspective of the Austrian School, considering its tendency to recurrence, its unequal growth rates, high inflation, financial volatility, strong monetary issues, variability in production and public deficits, among other problems. The methodology is qualitative in that it analyzes documents and quantitative in that it analyzes and interprets data from selected variables. The hypothesis is that the economic system requires institutional arrangements in order to favor profit maximization practices, thereby creating greater risks. Macroeconomic variables are analyzed, and the results show patterns of the economic cycle in a context of economic liberalization, deregulation and other forms of adaptation of economic policies with a view to facilitating the expansion of transnational capital. The economic and financial events are marked by instability, this being accentuated from the eighties of the last century. The paper concludes by pointing out the need to incorporate inclusive economic and social policies, since the current ones contradict the theoretical postulates and the possibility of achieving the goals of development so long promised.