Jump to ContentJump to Main Navigation
The Intellectual Origins of the Global Financial Crisis$
Users without a subscription are not able to see the full content.

Roger Berkowitz and Taun N. Toay

Print publication date: 2012

Print ISBN-13: 9780823249602

Published to Fordham Scholarship Online: January 2013

DOI: 10.5422/fordham/9780823249602.001.0001

Show Summary Details
Page of

PRINTED FROM FORDHAM SCHOLARSHIP ONLINE (www.fordham.universitypressscholarship.com). (c) Copyright Fordham University Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in FSO for personal use.date: 30 June 2022

The Roots of the Crisis

The Roots of the Crisis

(p.105) Ten The Roots of the Crisis
The Intellectual Origins of the Global Financial Crisis

Sanjay G. Reddy

Fordham University Press

The crisis has its origins in part in the ‘high theory’ provided by mainstream economists, who have helped to create the perception that a deregulated financial market could be an instrument of market efficiency, failing to emphasize the ways in which it could be instead a source of systemic instability. Economists generally failed to understand the significance of the micro-structure of a financialized market economy and therefore the origins of the current crisis. Although bearing some similarities with previous crises, the recent financial crisis was different in having at its core the epistemic confusion generated by complex and often ill-defined instruments. Economists can play a constructive role in future discussions on economic policy, beginning with a recognition that they have recently failed to serve the public interest.

Keywords:   John Maynard Keynes, The General Theory of Employment, Interest and Money, Sanjay G. Reddy, Economic Theory, Financial Crisis, The Great Depression, Kenneth Arrow, Gerard Debreu, Fisher Black, Myron Scholes, Pareto optimal, Randall Dodd, Robert Shiller, derivative markets, Charles Kindleberger, Negative feedback Mechanics, economic bubbles, transversality condition, macroeconomics, microeconomics, Dutch Golden Age, financial capitalism, Hannah Arendt

Fordham Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .