Greek finance minister Yanis Varoufakis’s suggestion that “things could get worse in perpetuity, without getting better” (How I became an erratic Marxist, 18 February) is at odds with a key notion of the business cycle – that after a deflationary clearout of the capitalist system in crisis, states have reformed the system to assist the cyclical recovery in such a way as to improve things in the long-run.Marx and the neoliberal economists have relied on the wrong sort of mathematical models to solve the problems, hence the continuation of the crisis without end which Yanis alludes to. Marx was not too hot on understanding what businesses could do to avoid crises, but within any value system appropriate accounting techniques need to be allied to economic theory to work on solving the problems over time. But, yes, stability needs to be established first, as Yanis suggests.Jeremy ComerfordChippenham, WiltshireThe poorest in Greece are accumulating debts, not hoarding … this excess saving is taking place in Germany, not Greece Continue reading...
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