How to Guide the Economy in a Socially Desirable Direction: Lessons from the 2007 Financial Turmoil
This article maintains that capitalist market economies have a threefold composite characteristic: (i) the central role of money and financial relations; (ii) the crucial role of institutional patterns; and (iii) the macro-nature of stability and viability concerns. It makes social control a consistent way of designing an efficient macro environment. Institutional economics precisely relies on such a triptych, and reveals to be an appropriate theoretical and practical reference to deal with today's major economic issues, such as the 2007-2008 systemic crisis. The article suggests, therefore, an institutional analysis that points to the role of the institutional-regulatory framework, and the rationale of social control principles in the stabilization of the working of capitalist finance. It then advocates for an alternative organization of the banking and financial system to ensure systemic sustainability and to guide the economy in a socially desirable direction.
Volume (Year): 48 (2014)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/MJEI20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/MJEI20|
When requesting a correction, please mention this item's handle: RePEc:mes:jeciss:v:48:y:2014:i:2:p:575-584. 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: (Chris Longhurst)
If references are entirely missing, you can add them using this form.