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Destabilizing competition and institutional stabilizersThe contribution of J.M. Keynes


  • Angel Asensio

    () (CEPN - Centre d'Economie de l'Université Paris Nord (ancienne affiliation) - UP13 - Université Paris 13 - CNRS - Centre National de la Recherche Scientifique)


Orthodox economics rests on the belief that if markets were fully competitive, there would be general efficiency. The current financial malfunctions, accordingly, would not result from free competition, but rather from insufficient competition. This statement is strong, for it rests on a sophisticated conceptual framework within which there is no dysfunction when perfect competition prevails. But it is also strongly unrealistic, for it rejects public interventions even when markets obviously lost there bearings in the storm. In fact much of those who referred to the orthodox approach before the financial crisis, are now, inconsistently, claiming for public interventions. This short paper argues that there is a consistent way of thinking about necessary public interventions. Indeed, John Maynard Keynes focus on fundamental uncertainty consequences questioned the supposed virtues of competition and offered the most elaborated alternative as for thinking about the current turnmoils and designing the necessary stabilizers.

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  • Angel Asensio, 2008. "Destabilizing competition and institutional stabilizersThe contribution of J.M. Keynes," CEPN Working Papers halshs-00332381, HAL.
  • Handle: RePEc:hal:cepnwp:halshs-00332381
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    References listed on IDEAS

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    9. Siow, Aloysius, 1997. "Some evidence on the signalling role of research in academia," Economics Letters, Elsevier, vol. 54(3), pages 271-276, July.
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    12. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
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