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Contemporary Economics Dilemma: High Ethics or More Extensive Governing?
[Současné dilema ekonomie: vyšší etika, nebo širší regulace?]

Author

Listed:
  • Jaroslav Daňhel
  • Eva Ducháčková

Abstract

The authors of the article point out that economic theory has failed to yield a solid theoretical background in critical situations such as the current financial and economic crisis and the transformation of post-communist economies. Mainly the present crisis opens the question of the unsatisfactory status of economic science. While classical liberal or Keynesian concepts are failing, theorists cannot look to mathematical modelling for help. It seems that traditional concepts malfunction, and the financial market is particularly predisposed for this process. The application of mathematical models is overvalued. The article calls attention to the possible influence and adequacy of regulatory attitudes on a return to equilibrium. It seems that the part of ethics must be upgraded decidedly. The challenge for today's theoretical economists is to find a new paradigm of economic science for today's global era.

Suggested Citation

  • Jaroslav Daňhel & Eva Ducháčková, 2012. "Contemporary Economics Dilemma: High Ethics or More Extensive Governing? [Současné dilema ekonomie: vyšší etika, nebo širší regulace?]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2012(1), pages 3-12.
    • Handle: RePEc:prg:jnlaop:v:2012:y:2012:i:1:id:354:p:3-12
    DOI: 10.18267/j.aop.354
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    References listed on IDEAS

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    1. Ross, Stephen A, 1973. "The Economic Theory of Agency: The Principal's Problem," American Economic Review, American Economic Association, vol. 63(2), pages 134-139, May.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    paradigm of economic science; financial and economic crisis; crisis of the welfare state model; regulatory projects; ethics of economic interaction; new architecture of regulation of financial markets; debt problems of the Euro area;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D69 - Microeconomics - - Welfare Economics - - - Other
    • G01 - Financial Economics - - General - - - Financial Crises
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • K29 - Law and Economics - - Regulation and Business Law - - - Other

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