Dahil ito ay tag init pag kasi ito sa august 1 pa itatanim mamatay ang itatanim kasi tag ulan iyon
This article summarises the main arguments of a critical literature that radically questions the neoclassical economic theory of state-market relations and identifies the fundamental methodological weaknesses of this school of thought. As an alternative, it presents an interpretation of the methodology on which Original Institutionalism, the political economy movement launched by Thorstein Veblen, is based. The article proposes an understanding of the economy and markets as emerging institutions, reflecting a metaphysics of social systems that views the latter as complex, self-organised and interactive processes. The state-market relationship is analysed in light of this institutional interactivity. Highlighting the co-evolution of state and market, the article attributes a central role to industrial policy in economic development processes.
On the one hand, an increase of government investment may directly and indirectly crowd out private investment. Firstly, a rise of government investment needs to be financed, which means the government sector will compete with the private sector for funds in the capital markets, causing the interest rate to rise