A World Between Crises
"Acta Oeconomica", Vol. 62 (1), 2012, pp. 3-13
Posted: 2 Sep 2016
Date Written: August 9, 2016
Abstract
One of the most often committed mistakes in economic reasoning is the supposition about continuity of economic processes. Yet what dominates in reality is the process of permanent changes which sometimes happen not in a linear but in a cascade way. It must be acknowledged that the capitalist market economy by its very nature is involved in periodical crises. They must occur from time to time, yet the magnitude of the recent crisis is a result of inappropriate institutions and wrong macroeconomic policies based on neoliberalism. The underlying causes of the crisis and the ways out of it at the era of interdepend global economy is discussed in vividly in the number of books and papers, yet it ought to be clear that the world is going from one crisis to another. Thus one must consider not only the economics of crisis but as well a kind of crisis of economics. There is a need of New Pragmatism, based on the better understanding of the economics as science describing the economy as a system of forces and flows which are feedback and influence each other.
Keywords: Crisis; Recession; Globalization; World Economy; International Finance; Economic Policy; Institutions; Regulation; Financial Markets; Governance
JEL Classification: A11; B10; D53; E32; E63; F02; F34; F42; N20; P10
Suggested Citation: Suggested Citation