Principle of Economics Ha Joon Chang

* Ha-Joon Chang is one of the leading heterodox economists( refers to methodologies or schools of economic thought that are considered outside of "mainstream economics")

and institutional economists(focuses on understanding the role of the evolutionary process and the role of institutions in shaping economic behaviour.

He also specialises in Development economics

* Chang believes that free trade is a myth. Based on the fact that all governments have restrictions about what can be traded, who can trade it and how it can be traded.

free trade economists have argued that the mere co-existence of protectionism and economic development does not prove that the former caused the latter”.

Free trade economists have to explain how free trade can result in economic success of today's rich countries, when it simply had not been practised very much before they became rich.

https://www.youtube.com/watch?v=R4BelDrWWt0

Neoliberal policies

* Believing in the free market

* Private ownership

* Rule of money

Within neoliberal policies there consists of new and old liberalism.

New liberals have different beliefs to the old liberals.

New Liberalism

* Introduce some degree of income tax

* Like the central bank

* Believe in free markets, free trade, deregulated economy and private ownership.

Old liberals

* Democracy is bad for capitalism

* Poorer people create income tax, which helps the economy

History of trade

When developing countries are going into financial crisis, they were told by the world bank and the rich country governments that they have to cut the spending, run budget surplus, raise interest rates by up to 80%

When rich countries have financial crisis they have to cut interest rates to practically 0%

Eg: when south korea had financial crisis in 2011, they had to cut interest rates to 1% of GDP

Ha-Joon Chang says that this is monetarism for the poor and keynesian for the rich....