THE MACROECONOMIC FETISH IN ANGLO-AMERICAN ECONOMIES

Abstract

English-speaking economists imagine that the economy is manipulated by policies directed at the macroeconomic level. The microeconomy is supposedly dictated by the market mechanism (and by policies designed to enhance the market's operations). This vision is reinforced in Australia within the syllabus, in the bureaucratic hierarchy, in policy priorities, and in media commentary. Yet the vision is essentially ideological, and historically inept. The intellectual and political origins of this vision are explored; and its distortionary and adverse effects on Australian industry policy are examined.