Hubert Fromlet: The global financial crisis – economic research before and after the bursting bubble
11 May 2009 | Posted By: JIBS Stories
Summary in English:
So far, we have not got a broader debate on what economic theory and research already had to offer before the bursting financial bubble in 2007. I would argue: quite a lot for the observant and flexible representatives in economic academia – but almost nothing for dogmatic “pure†macroeconomists rejecting the value of interdisciplinary research.
However, a number of crucial shortcomings in economic research have been revealed anyway during the ongoing global financial and economic crisis. More research efforts should be particularly put on the modelization of psychology (behavioral finance), on financial macroeconomics (liquidity included), and on institutional economics. We need urgently what Acemoglu calls a “theory of market transactions that is more in tune with their institutional and regulatory institutionsâ€.
Read the full text at Hubert Fromlet’s blog (in Swedish)
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