To get out of this vicious cycle, first of all the crazy economic dependence on the whims of clearly irrational financial markets must be reduced – which means not just more regulations, but also shrinking of the financial sector and subjugating it to the needs of the real economy and society.
Second, a real progressive change also requires a major change in strategy, within countries and globally. Essentially, we have to move away from the profit- and export-driven growth model to a wage-and-employment-led growth model, in which improvements in employment and quality of life of all citizens are seen as the basic goals.
Image: A protester hold a placard against banks during an"Occupy Hong Kong" rally outside the Hong Kong Exchange Square.Previous columns by Dr Jayati Ghosh:
Renowned economist Dr Jayati Ghosh is the Professor of Economics at the Jawaharlal Nehru University in New Delhi. She is also a member of the National Knowledge Commission set up by the Indian Prime Minister.