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Economic - Financial And Social Crisis: Between The Functions Of The State And Nature‘S Laws

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  • Cristian - Marian Barbu

    (ARTIFEX‘ University Bucharest Romania)

Abstract

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.

Suggested Citation

  • Cristian - Marian Barbu, 2013. "Economic - Financial And Social Crisis: Between The Functions Of The State And Nature‘S Laws," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-26.
  • Handle: RePEc:alu:journl:v:2:y:2013:i:15:p:26
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    File URL: http://oeconomica.uab.ro/upload/lucrari/1520132/26.pdf
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    References listed on IDEAS

    as
    1. Olivier Blanchard, 2009. "The Crisis: Basic Mechanisms and Appropriate Policies," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(1), pages 3-14, April.
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    More about this item

    Keywords

    crisis; economic model; paradigm; creative destruction; natural laws; animal spirits;

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P00 - Economic Systems - - General - - - General

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