Restoring the credibility of the legal and economic foundations of financial stability: The need for incorporation of economic theories?

Marianne Ojo

MPRA Paper from University Library of Munich, Germany

Abstract: To what extent can monetary and financial crises and cycles be explained through economic theories? This paper is aimed at highlighting why a reliance on economic theories may be necessary given certain flaws which have been revealed from the recent Financial Crisis. Namely, that economic and legal foundations of financial stability cannot always be considered to be credible. Further, the paper aims to accentuate on why despite the valid argument (that a reference to economic theories may be required to explain causalities of financial and monetary crises), causalities could also be explained from other perspectives – even though these perspectives may sometimes, not be as accurate.

Keywords: Theory of Economic Time (TET); Efficient Markets Hypothesis; financial stability; Currency Theory; Euro crisis; Austrian, Keynesian or Quantitativist-monetarist; Random Walk Theory (search for similar items in EconPapers)
JEL-codes: E3 E5 E52 E58 K2 M4 (search for similar items in EconPapers)
Date: 2013-05-11
New Economics Papers: this item is included in nep-hpe and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:46911

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