Here is Ariel's PhD dissertation, which is well worth reading for those interested in the evolution and limitations of the marginalist (neoclassical) models. From the abstract:
"The marginalist approach is unable to satisfactorily incorporate capital goods within the supply and demand explanation of prices and distribution, and this seems to have condemned modern general equilibrium theory to face an unpleasant dilemma: either this theory is, like Hahn, truly consistent with its own theoretical object, a notion of equilibrium that must be silent on the issue of how actual economies work; or, alternatively, the theory attempts to provide some explanation of the working of actual economies and in so doing, it must inescapably rely on traditional gravitational ways of reasoning that must presume the illegitimate notion of capital in value terms. Either way modern general equilibrium theory runs into a blind alley, with the implication that, to predict with reasonable accuracy price, quantity and distributional trends as observed in actual economies, an explanation with different theoretical foundations is necessarily called for."
Another end of the world is possible
There will be a lot of postmortems for the European Union (EU) after Brexit. Many will suggest that this was a victory against the neoliberal policies of the European Union. See, for example, the first three paragraphs of Paul Mason's column here. And it is true, large contingents of working class people, that have suffered with 'free-market' economics, voted for leaving the union. The union, rightly or wrongly, has been seen as undemocratic and responsible for the economics woes of Europe.
The problem is that while it is true that the EU leaders have been part of the problem and have pursued the neoliberal policies within the framework of the union, sometimes with treaties like the Fiscal Compact, it is far from clear that Brexit and the possible demise of the union, if the fever spreads to France, Germany and other countries with their populations demanding their own referenda, will lead to the abandonment of neoliberal policies. Aust…
So besides the coup in Brazil (which was all but confirmed by the last revelations, if you had any doubts), and the electoral victory of Macri in Argentina, the crisis in Venezuela is reaching a critical level, and it would not be surprising if the Maduro administration is recalled, even though right now the referendum is not scheduled yet.
The economy in Venezuela has collapsed (GDP has fallen by about 14% or so in the last two years), inflation has accelerated (to three digit levels; 450% or so according to the IMF), there are shortages of essential goods, recurrent energy blackouts, and all of these aggravated by persistent violence. Contrary to what the press suggests, these events are not new or specific to left of center governments. Similar events occurred in the late 1980s, in the infamous Caracazo, when the fall in oil prices caused an external crisis, inflation, and food shortages, which eventually, after the announcement of a neoliberal economic package that included the i…