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 ()
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- Olivier Blanchard, 2009.
"The Crisis: Basic Mechanisms and Appropriate Policies,"
Ifo Institute - Leibniz 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.
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