This book presents the complete and pioneering works of the great
Spanish economist, Germán Bernácer (1883-1965), to an English audience
for the first time. Bernácer, the first director of the Research Service
of the Bank of Spain (1930-55), inspired Keynes' theory but was also a
major critic and opponent of it. A macro economist by trade, Bernácer's
major theory related to recurring crises, which he believed were
inherent in the existence of speculative markets such as property, works
of art, long term currency markets, commercial trading, materials, and
energy. Bernácer believed that these speculative markets generate
unearned income and hoarding, they abound in financial capital and, when
such capital is captured, it then lacks in production industries where
real value is created, draining their financing. The author shows how
history has repeated itself in this manner in 1929, 2007, 2008, 2014 and
2016.
The author derives his content from Bernácer's Spanish publications and
his private correspondence with his contemporary economists, providing
an historical and thematic insight into his thinking. It is well-timed
to contribute to current worldwide debates on monetary, financial and
budgetary policies needed to implement an economic order that can
restore economic stability, providing readers with rare and important
insights into the deep roots of crises.
The book will be of interest to all readers interested in the history of
economic thought, history of financial crises, Keynesian approaches to
economics and criticism to Keynesian approaches.