EconPapers    
Economics at your fingertips  
 

THE CURRENT FINANCIAL AND ECONOMIC CRISIS EMPIRICAL AND METHODOLOGICAL ISSUES

Eduardo Strachman () and Jos Ricardo Fucidji ()

Journal of Advanced Studies in Finance, 2012, vol. 3, issue 1, 95-109

Abstract: In this paper we describe the main causes of the recent financial crisis as a result of many theoretical methodological and practical shortcomings mostly according to heterodox but also including some important orthodox economists At theoretical level there are problems concerning teaching and using economic models with overly unrealistic assumptions In the methodological front we find the unsuspected shadow of Milton Friedman s unrealisticism of assumptions thesis lurking behind the construction of this kind of models and the widespread neglect of methodological issues Of course the most evident shortcomings are at the practical level i huge interests of the participants in the financial markets banks central bankers regulators rating agencies mortgage brokers politicians governments executives economists etc mainly in the US Canada and Europe but also in Japan and the rest of the world ii in an almost completely free financial and economic market that is one almost without any regulation or supervision iii decision taking upon some not well regarded qualities like irresponsibility ignorance and inertia and iv difficulties to understand the current crisis as well as some biases directing economic rescues by governments Following many others we propose that we take this episode as an opportunity to reflect on and hopefully redirect economic theory and practice

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: The Current Financial and Economic Crisis: Empirical and Methodological Issues (2010) Downloads
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:srs:jasf00:v:3:y:2012:i:1:p:95-109

Access Statistics for this article

Journal of Advanced Studies in Finance is currently edited by Laura GAVRILĂ (formerly Ştefănescu)

More articles in Journal of Advanced Studies in Finance from ASERS Publishing
Bibliographic data for series maintained by Claudiu Popirlan ( this e-mail address is bad, please contact ).

 
Page updated 2022-08-04
Handle: RePEc:srs:jasf00:v:3:y:2012:i:1:p:95-109