Despite all the crises that have shaken the world economy and financial system, the idea still appears to be widespread that the market is not only a place of rational adjustment but also of self-stabilizing forces. Large parts of economics and finance are based on this assumption. In his essay “Das Gespenst des Kapitals” (The Spectre of Capital), Joseph Vogl analyses our knowledge of the economy and asks, how in the face of the crises of the market can we speak of the economic world as a sensible and rational system?
The capitalist economic system is based on the idea that the market economy is self-regulative and develops self-stabilizing forces. According to the theory, supply and demand are adjusted to one another by the price and goods are efficiently and justly distributed. The state should intervene only in the case of so-called market failure, as for example with cultural institutions. Apart from these exceptions, the market economy is regarded as the most efficient form of the organization of exchange relations. Crises are explained not by causes within the system itself, but by market-external factors such as mistaken economic policy.