Institute for Rural Futures

Research Seminar

Time: Tuesday, 20 May, 2014, 1.00pm.

 Location: Institute for Rural Futures Seminar Room (Building CO12)

How to build an economy free of recession

Dr Samuel Meng*

Please join us.

Background:

Economic recessions continue to haunt mankind from time to time. Their impact on the economy can be dramatic, as demonstrated by the Great Depression of the 1930s and, more recently, the Global Financial Crisis. Although there are numerous studies on the causes of economic recession, most are confined to a relatively small spectrum and fail to uncover the fundamental cause. Using a multi-commodity macroeconomic model, the author illustrates that economic recessions are a consequence of stagnant household consumption, which in turn is a consequence of product innovation scarcity. It is suggested that a thorough revision of patent laws aimed at encouraging innovation, while preventing the abuse of patent monopoly, would eliminate economic bubbles, and open the door to smoother and faster economic growth.

*Research Fellow, Institute for Rural Futures, School of Behavioural, Cognitive and Social Sciences.