The Modern Theory of Economics

The Modern Theory of Economics (Ros. La Moderna Teoria Economica) is a book of economic theory written in 26 PC by economist and future Dux of La Rossa Giulio Moretti. Written in the decades after the Silver Crisis, the work argues in favor of the changes brought on by the recent dismantling of the silver standard, taking the position that it is necessary to untangle a currency from the material goods backing it, taking the position that it has stifled the possibility of public investment into the island's industries and halted growth. Since the abolishment of the standard, La Rossa has experienced several years of sustained, high inflation, which has regardless been outpaced by growth from a rejuvinated private sector due to the governmental reforms.

The piece paved the way towards a revival, or true birth, of the private sector. Where before La Denunzia the aristocratic Dux arguably worked to make the hereditary magnates of the city-provinces immovable (even the new wealth that arose during the Rossan Silver Age did not displace their power), the revolt saw most of their property seized, and the economy reorganized as nationally-owned for public benefit. Though their property was partially returned under Ducissa DeGaio, her reign saw the rise of smaller manufacturers which took over the remains of the old aristocrats' businesses. Allowed to flourish due to the sudden inflow of government investment, La Rossa finally saw the creation of a more competitive market, as new businesses and factories took off following a burst of public backing.

In the years following its publishing, the politics set forward by the book have become a commonly accepted piece of Rossan economics, adopted even by Dux Leo Minestrici di Mineria, who would eventually beat Moretti in the 39 PC election. Although the work made no argument in favor of international approachment, the synergy created between markets and government in the years succeeding it, eventually leading to the re-emergence of the Six Families, would eventually allow them to make the case towards integrating into the international markets in order to save the island's ailing economy. Manufacturing, and crucial industries especially, remain highly subsidized in order to allow for competitiveness on the stage of the archipelago, with growth consistently outpacing inflation.