Why is there excess capacity in the world today? The neoclassical economics that came to power in the 1970s argues essentially that supply should create its own demand--Say's Law. But it has not worked out that way. This economist returns to the work of early theorists to explain what happened,...

The authors argue that the current financial crisis, the worst since the Great Depression, can be seen as the latest phase in the evolution of financial markets under a radical financial deregulation process that began in the late 1970s. Deregulation accompanied by rapid financial innovation...