As the financial and economic crises that started in 2008 continue to expand undeterred by fiscal and monetary intervention, it's natural to ask whether the neo-classical economic model of the past 40 years is failing. Proponents of subordinate and fringe economic theories sense an opportunity here, and they are increasingly vocal about their beliefs. Let's look at the basic framework for all economic theories to understand what is being debated and create a reference point to organize these issues. There is a logic to it all.
There is nothing new in economics, nor is there one right way that works for all societies all the time. Economic theories only work as long as people believe in them; success or failure is predicated on confidence gaming. When an economic philosophy fails in practice it is not because of an inherent flaw in the philosophy or because of the rise of a competing philosophy, it is because the practitioners and policy makers have violated the tenets of their own beliefs, which erodes confidence in the system....336 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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