The Banking Crisis - A Rational Interpretation

A. Patrick Minford

No E2009/10, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: Modern macroeconomic models have been widely criticised as relying too much on rationality and market efficiency. However, basically their predictions about this crisis are being borne out by events. 'Crashes' are an integral part of an 'efficient market' capitalism and are brought on by swings in the news about productivity growth,this time nearly two decades of strong computer-based productivity growth were brought to a crashing halt by raw material shortages. This presages a slow recovery until innovation in material use frees growth up again as it did in the 1990s after the shortages of the 1970s.

Keywords: Macroeconomic models; Banking Crisis (search for similar items in EconPapers)
JEL-codes: E0 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2009-07
New Economics Papers: this item is included in nep-ban, nep-fdg, nep-fmk and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Political Studies Review , vol. 8(1) (2010), 40-54

Downloads: (external link)
http://carbsecon.com/wp/E2009_10.pdf (application/pdf)

Related works:
Journal Article: The Banking Crisis: A Rational Interpretation (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cdf:wpaper:2009/10

Access Statistics for this paper

More papers in Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section Contact information at EDIRC.
Bibliographic data for series maintained by Yongdeng Xu ().