Macroeconomics Discipline at the Crossroads: A Comment

Murali Patibandla
Additional contact information
Murali Patibandla: Murali Patibandla, Indian Institute of Management Bangalore. E-mail: muralip@iimb.ernet.in

Jindal Journal of Business Research, 2013, vol. 2, issue 1, 23-25

Abstract: The 2008 financial crisis of the US was a watershed for economics discipline, especially macroeconomics. A part of the reason was macroeconomic policies based on the Chicago school’s ideology that unfettered free markets self-regulate based on strong assumptions that people are perfectly rational, maximize self-interest as autonomous agents, markets are frictionless (no transaction costs), there is perfect information and there is no moral hazard behavior for separation of ownership and control of capital. In real world most of these assumptions fail to hold. This article traces the underlying factors for the crisis and emphasizes the need for regulation of financial markets.

Keywords: Monetarist school of macroeconomics; unregulated financial markets; imperfect information; moral hazard (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/2278682114522361 (text/html)

Related works:
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:sae:jjlobr:v:2:y:2013:i:1:p:23-25

DOI: 10.1177/2278682114522361

Access Statistics for this article

More articles in Jindal Journal of Business Research
Bibliographic data for series maintained by SAGE Publications ().