Risk and Precaution
Risk and Precaution

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None of the known macroeconomic theories are adequate to understand what to do in a global crisis like the 2020 Global Pandemic. Rational Expectations and monetarism cannot even explain how is that a global crisis like this happens. The IS-LM model was designed to manage business cycles, but not to confront major crises. And Keynes economics was written many years ago, based in volatile investors expectations that do not describe the present situation. There is a need of a new economic theory. The main problem of traditional economy is that it has not taken seriously the need to explore the characteristics that the institutional arrangement must have for markets to operate properly. The idea that free markets work by themselves, have perniciously enter into microeconomics, macroeconomics and economic growth theory. And as a consequence we do not have today solid microeconomic foundations for the required macroeconomic policies to confront major crises; and neither for adequate models of economic growth for the world at large, nor for underdeveloped economies. We need a new economic theory. The main purpose of this manuscript is to delineate the route towards the consolidation of such a new theory.Carlos Obregon has a PHD from Colorado University and has been invited as a Post-Doctoral Fellow by Harvard University and a Visiting Scholar at the Massachusetts Institute of Technology. He is a well known expert in global issues, He has written 30 books and many articles both in economic theory and policy.

  • Released: November 16, 2020
  • Author: Alan Randall
  • Rating: 4,9
  • Publisher: Ebook DIgital Agency
  • Total Page: 774 pages
  • File Size: 3670 KB

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