Economic Crisis and Economic Theory*

Economic Crisis and Economic Theory

Two dynamic general equilibrium economies compete in explaining the United States’interwar business cycles. Despite the demand driven contender’s slight advantages, the results remain too close to call a clear winner.

The Crisis in Economic Theory

This paper discusses modern macroeconomic and financial models in the light of the current crisis. Theory has been revealed to be inadequate in its explanation of the origins and the nature of the crisis, as Jean-Claude Trichet the Governor of the European Central bank and his colleagues at other central banks have indicated. Basic macroeconomic models, however sophisticated have continued to b...

Economic theory and the financial crisis

I want to probe in the role of the market in allocating resources in this very preliminary essay. One does not have to study deeply to that the failure of markets for various kinds of derivative securities to perform properly is an essential element of the current financial crisis. Actually, financial crises are not a new phenomenon. The history of capitalism has been marked by repeated collaps...

Economic Crisis and Audit Fees

Economic crisis generally increases firms’ bankruptcy and consequently audit risk. Hence, auditors are more likely to respond to this increased risk through increasing audit fees. However, in the lack of adequate empirical and theoretical evidence, the role of this macro-economic variable, economic crisis, is not clearly demonstrated on audit fees. Therefore, this study investigates the role of...

The Economic Crisis is a Crisis for Economic Theory Alan Kirman