The Global Crisis of 2008 and Keynes's General Theory [Paperback]

This book describes the international context and some of the factors that have weakened the influence of Keynesian economic thought. It illustrates economic responses offered by the new Keynesian school and the alternative perspective on the global crisis presented by the monetary circuit theory, with a special emphasis on Minskys financial instability hypothesis. The authors present a commentary on Keyness General Theory with an emphasis on his theory of the scarcity of capital, his analysis of the change in the structure of costs, and straightforward recommendation for a policy marked by very low interest, which he felt was needed to maintain full employment. Additionally, the book discusses major changes in the cost structure of globally active companies, resulting from the extremely intense international capital flows over the last three decades. The authors point out the need to redefine the open economy macroeconomics model, switching it from a world consisting of two major developed open economies to one consisting of two major open economies, one of which is developed and the other is developing.Economic Theory and Economic Policy Since the Seventies: Keynesians versus New Classical Economists.- The General Theory of Employment, Interest and Money: An Overview with Commentary.- Impact of Financial Globalization on the Scope of Economic Theory and Policy.Fikret auaevi was born in Biha, Bosnia and Herzegovina, in 1963. He is Professor of Economics and International Finance at the School of Economics and Business, University of Sarajevo. In 2002, 2006, 2007 and 2010 he was a Visiting Fellow under the South East Europe Faculty Development Programme at the London School of Economics and Political Science. In the 2011/2012 academic year Fikret was the SEESOX Alpha Bank Visiting Fellow at St Antony's College, University of Oxford. Over the last decade he has written extensively about economic transition in the World, South-East Europe, the Western Balkans, anlók