IDEAS home Printed from https://ideas.repec.org/a/bus/jphile/v3y2010i2p58-73.html
   My bibliography  Save this article

Financial stability requires macroeconomic foundations of macroeconomics

Author

Listed:
  • Sergio Rossi

    (University of Fribourg)

Abstract

Financial stability features prominently among the goals of several post­crisis macroeconomic policies around the world. Being a systemic characteristic, financial stability requires a systemic analysis, which only macroeconomics can offer logically. Yet, the current way of doing macroeconomics is not up to the task, as it is grounded on so­called microfoundations. Considering macroeconomics as the science of aggregating data obtained at microeconomic level can lead indeed to conclusions that are either misleading or wrong. This paper points out that the true foundations of macroeconomics are macroeconomic, and that understanding the working of monetary economies of production and exchange requires a conceptual rather than a mathematical treatment of economic issues at a systemic level.

Suggested Citation

  • Sergio Rossi, 2010. "Financial stability requires macroeconomic foundations of macroeconomics," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 3(2), pages 58-73, May.
    • Handle: RePEc:bus:jphile:v:3:y:2010:i:2:p:58-73
    as

    Download full text from publisher

    File URL: http://jpe.ro/pdf.php?id=2881
    Download Restriction: no
    File URL: http://jpe.ro/?id=revista&p=140
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Umam Khoirul & Muhammad Atha Mahdi & Alfarid Fedro, 2023. "Modern Monetary Theory: Revising Money Demand and Supply from Umer Chapra's Perspective," Post-Print hal-04160994, HAL.

    More about this item

    Keywords

    financial crises; macroeconomics; monetary theory of production;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bus:jphile:v:3:y:2010:i:2:p:58-73. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentin Cojanu (email available below). General contact details of provider: https://edirc.repec.org/data/aseeero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.