“By one estimate, 90% of international transactions were accounted for by trade before 1970, and only 10% by capital flows. Today, despite a vast increase in global trade, that ratio has been reversed, with 90% of transactions accounted for by financial flows not directly related to trade in goods and services.”

— Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 8, Bubbles And Crashes In Emergent Markets, p. 304.

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Didier Sornette 27

French scientist 1957

Robert Gilpin (1930–2018) Political scientist

Source: The Political Economy of International Relations (1987), Chapter Five, The Politics Of International Trade, p. 171

“The circular-flow diagram offers a simple way of organizing the economic transactions that occur between households and firms in the economy. The two loops of the circular-flow diagram are distinct but related. The inner loop represents the flows of inputs and outputs. The households sell the use of their labor, land, and capital to the firms in the markets for the factors of production. The firms then use these factors to produce goods and services, which in turn are sold to households in the markets for goods…”

N. Gregory Mankiw (1958) American economist

N. Gregory Mankiw, Brief Principles of Macroeconomics. 2011, p. 24-25
2000s -

“The channels of world trade are so obstructed by the pursuit of nationalist economic policy that steps should be taken at once to make it possible to arrive at an international economic agreement which would revive international trade. A return to free trade pure and simple would only increase unemployment.”

Ramsay MacDonald (1866–1937) British statesman; prime minister of the United Kingdom

Speech to the National Labour conference at Caxton Hall, London (28 October 1935), quoted in The Times (29 October 1935), p. 9
1930s

“Markets are institutions that exist to facilitate exchange, that is, they exist in order to reduce the cost of carrying out exchange transactions. In an economic theory which assumes that transaction costs are nonexistent. markets have no function to perform, and it seems perfectly reasonable to develop the theory of exchange by an elaborate analysis of individuals exchanging nuts for apples on the edge of the forest or some similar fanciful example. This analysis certainly shows why there is a gain from trade, but it fails to deal with the factors which determine how much trade there is or what goods are traded.”

Ronald H. Coase (1910–2013) British economist and author

1960s-1980s, "The Firm, the Market, and the Law" (1988)

“The dominant role played by… exporters’ and importers’ GNP and distance in explaining trade flows.”

Jan Tinbergen (1903–1994) Dutch economist

Source: Shaping the world economy, 1962, p. 266

“International trade in goods and services has expanded steadily over the past six decades thanks to declines in shipping and communication costs, globally negotiated reductions in government trade barriers, the widespread outsourcing of production activities, and a greater awareness of foreign cultures and products. New and better communications technologies, notably the Internet, have revolutionized the way people in all countries obtain and exchange information.”

Paul Krugman (1953) American economist

Paul R. Krugman, Maurice Obstfeld, and Marc J. Melitz, International Economics: Theory & Policy, 9th edition (2012)

“The free flow of people across borders is not to be confused with the free flow of goods across borders. Free trade is a positive-sum game. Contrary to illegal immigration, it is always invited, consensual and hence mutually beneficial to the parties involved.”

Ilana Mercer South African writer

“We Are the World,” http://www.ilanamercer.com/phprunner/public_article_list_view.php?editid1=147 WorldNetDaily.com, March 31, 2006.
2000s, 2006

“The Chartered ccountants by virtue of their qualifications, experience and training can render valuable services in these difficult times in areas which are vital to economic and industrial growth. It should be the duty of the members of the profession in the Northern India Regional Council, apart from examining accuracy of transactions, the modern auditor should also look into the propriety of such transactions… the profession has to develop uniform accounting principles, standard terminologies and precise definitions of various accounting concepts. This was desirable from the point of view of providing reliable information in the financial statements for the benefit of the intending investors, members of the public, government agencies and financial institutions. This will enable individuals and organisations to form a fairly accurate judgment of the financial position by a study of the audited financial statements of companies.”

Fakhruddin Ali Ahmed (1905–1977) the fifth President of India and a politician

Source: From the Desk of the Chairman... http://nirc-icai.org/Newsletter/NewsletterFebruary2012.pdf, Northern India Regional council of the ICAI, News Letter, February 2012

“A striking feature of financial service activities during the past few decades is that the financial transactions essential to the operation of the 'real' economy has become increasingly dwarfed by speculative activity.”

Peter Dicken (1938) British geographer

Source: Global Shift (2003) (Fourth Edition), Chapter 13, The Financial Services Industries, p. 469

“It is capitalism, not Marxism, that trades in futures.”

Terry Eagleton (1943) British writer, academic and educator

Source: 2010s, Why Marx Was Right (2011), Chapter 4, p. 65

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