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Financial and world economic crisis: What did economists contribute?

  • Friedrich Schneider


  • Gebhard Kirchgässner


In this paper we deal with two questions, (i) what are the origins of the current financial crisis, and (ii) what did economists contribute, or why did economists fail to provide a convincing answer for the origins of the crisis, and possible solutions to overcome it? Apparently, the economics profession was unaware of the looming worldwide financial and economic crisis, and significantly underestimated its global dimensions and consequences. A first and prelimi-nary analysis is undertaken to explore reasons for these failures. We conclude by pointing to some consequences for economics as well as for economic policy.

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Article provided by Springer in its journal Public Choice.

Volume (Year): 140 (2009)
Issue (Month): 3 (September)
Pages: 319-327

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Handle: RePEc:kap:pubcho:v:140:y:2009:i:3:p:319-327
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