e-journal

Some lessons for economists from the financial crisis

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The purpose of this paper is to discuss implications of the global crisis for economic and
financial research and policy.
Design/methodology/approach – The paper reviews many recent studies on the crisis and offers
the author’s views on some of the most important lessons to be drawn from the crisis
Findings – The review counters views that the crisis reflected a basic failure of economics, but
agrees that it undercuts some particular theories and approaches to economics. More attention needs
to be given to imperfections in the operation of both markets and governments, drawing on insights
from behavioral and neuro economics and finance and political economy analysis and recognizing the
importance of limited information and uncertainty about correct models. The creation of perverse
incentive structures explain a large part of the financial excesses that led to the crisis. Financial
considerations need to be integrated much more closely with macroeconomic analysis and financial
risk analysis needs to pay more attention to economic considerations. Useful insights can be drawn
from many different theories and approaches and we should not expect any one theory to have all the
answers. The excesses observed in the advanced economies do not imply that there are not enormous
benefits to be gained from further financial liberalization in emerging market economies, but they do
show that great care must be taken in establishing strong supervision of such liberalizations and
highlight many of the dangers to look out for.
Originality/value – The paper offers a guide to the literature for those interested in learning more
about the causes and effects of the crisis and policy responses and offers a number of suggestions for
fruitful research topics and policy strategies.

Keywords Financial risk, Macroeconomics, Financial analysis, Behavioural economics

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Ketersediaan

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Informasi Detail

Judul Seri

Indian Growth and Development Review

No. Panggil

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Penerbit

: Emerald Group., 2010

Deskripsi Fisik

Indian Growth and Development Review Vol. 3 No. 2, 2010

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

EKONOMI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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