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Political origin of economic problems

ABSTRACT

This paper presents so conveyed idea nowadays that the economic problems have a political origin, or that the economic problems have not been solved because of lack of political support. We show how the acceptation of these ideas is related to the appearance of the School of Public Choice, or School of National Choice - an analysis of a neoliberal character - and the called political macroeconomics. We discuss how these approaches lead to the proposition of adopting compensatory social policies which may guarantee the government legitimacy.

KEYWORDS:
Political economy; economic methodology; history of economic thought; economic development

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