 How to guide the economy in a socially desirable direction ? Lessons from the 2007 financial turmoilPost-Print from HAL 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. Keywords: capitalist market economy; financial instability; institutions; money; regulation; social control (search for similar items in EconPapers) Published in Journal of Economic Issues, 2014, 48 (2), pp.575-584. ⟨10.2753/JEI0021-3624480234⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01089365 DOI: 10.2753/JEI0021-3624480234 Access Statistics for this paper More papers in Post-Print from HAL |
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