IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-01089365.html
   My bibliography  Save this paper

How to guide the economy in a socially desirable direction ? Lessons from the 2007 financial turmoil

Author

Listed:
  • Faruk Ülgen

    () (CREG - Centre de recherche en économie de Grenoble - UPMF - Université Pierre Mendès France - Grenoble 2 - UGA - Université Grenoble Alpes)

Abstract

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.

Suggested Citation

  • Faruk Ülgen, 2014. "How to guide the economy in a socially desirable direction ? Lessons from the 2007 financial turmoil," Post-Print halshs-01089365, HAL.
  • Handle: RePEc:hal:journl:halshs-01089365
    DOI: 10.2753/JEI0021-3624480234
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01089365
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

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


    Cited by:

    1. Faruk Ülgen, 2014. "Financialized capitalism and the irrelevance of self-regulation : a Minskyian analysis of systemic viability," Post-Print halshs-01111162, HAL.

    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:hal:journl:halshs-01089365. 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: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.