Economic - Financial And Social Crisis: Between The Functions Of The State And Nature‘S Laws
The paper analyses some of the challenges that economic sciences face during theglobal crisis. Ideologically, the crisis caused a fierce debate between the adherents of theultraliberal theory regarding Adam Smith‘s ‘invisible hand‘ and the supporters of stateinterventionism suggested by John Maynard Keynes in order to overcome recession. The crisistherefore, generated a change in the post-WW II development paradigm. Due to the functionsassumed, in order to respond best to an economic model considered to be infailible and immuable,based on growth, a model that ignored nature‘s laws, the state pushed to moral hazard bothentrepreneurs and consumers. The new generations can be characterized with one word -ignorance. Whether we cultivate or not this ignorance, this is another story. It is however certainthat the ‘prosperity generations‘ have their sense of measure atrophied. They cannot conceive theworld outside the comfort they have been used to. The conclusion is that the existing paradigm ledto increased instability in the economic system, which led to a crisis.
Volume (Year): 2 (2013)
Issue (Month): 15 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Olivier Blanchard, 2009.
"The Crisis: Basic Mechanisms and Appropriate Policies,"
Ifo Institute for Economic Research at the University of Munich, vol. 10(1), pages 3-14, 04.
- Olivier J. Blanchard, 2009. "The Crisis; Basic Mechanisms and Appropriate Policies," IMF Working Papers 09/80, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:alu:journl:v:2:y:2013:i:15:p:26. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dan-Constantin Danuletiu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.