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dc.contributor.authorBeker, Victor A.en_US
dc.date.accessioned2010-07-12en_US
dc.date.accessioned2010-07-19T15:16:31Z-
dc.date.available2010-07-19T15:16:31Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/36658-
dc.description.abstractThe outburst of the 2008 global economic crisis sparked a myriad of criticism on mainstream neoclassical economic theory, held responsible for not even have considered the possibility of the kind of collapse that the subprime mortgage meltdown unleashed. In this paper, it is argued that what happened was a case of malpractice by hundreds of economists in banks and rating agencies who created and certified as almost risk-free securities assets that were actually highly risky as the events after 2007 overwhelmingly showed. Such a massive case of malpractice denounces deep failures in the regulatory system. The deregulation movement that took place during the 1980s and 1990s was inspired by an almost religious belief in the power of market forces to solve any economic problem. Neoclassical economics can be blamed for creating the ideological climate which stimulated the deregulation movement in the U.S.A during those decades. After discussing some aspects of economics methodology, arguing the need to approach the economy as an interactive complex system, and discussing the use of mathematics in economics, it is argued that the main object of economists' efforts should be economic illness rather than economic health. Finally, a list of 15 guidelines is sketched out for improving the methodological approach as well the contents of economic analysis.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.relation.ispartofseriesEconomics Discussion Papers 2010-18en_US
dc.subject.jelB41en_US
dc.subject.jelA11en_US
dc.subject.ddc330en_US
dc.subject.keywordEconomic crisisen_US
dc.subject.keywordmalpracticeen_US
dc.subject.keywordbounded rationalityen_US
dc.subject.keywordcomplexityen_US
dc.subject.keywordeconomic anomaliesen_US
dc.subject.keywordmicrofoundationsen_US
dc.subject.keywordregulationen_US
dc.subject.stwFinanzmarktkriseen_US
dc.subject.stwWirtschaftskriseen_US
dc.subject.stwBeschränkte Rationalitäten_US
dc.subject.stwWirtschaftswissenschaften_US
dc.subject.stwNeoklassiken_US
dc.subject.stwDeregulierungen_US
dc.subject.stwKritiken_US
dc.subject.stwWissenschaftliche Methodeen_US
dc.subject.stwMikroökonomische Fundierungen_US
dc.subject.stwVerhaltensökonomiken_US
dc.subject.stwRegulierungen_US
dc.titleOn the economic crisis and the crisis of economicsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn630979766en_US
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.en-
dc.identifier.repecRePEc:zbw:ifwedp:201018-
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