THE CURRENT CRISIS APPEALS TO ECONOMISTS
THE CURRENT CRISIS APPEALS TO ECONOMISTS

Summary/Abstract: Our main objective within the scope of this work is to attempt to demonstrate that the current crisis has greatly challenged economists. Actually, many economists have assumed that the neoclassical theory has been involved in triggering the current crisis. Based on some assumptions inherent in the selfregulating capacity of markets considered to be as being "efficient" as well as on the rationality of economic agents, this theory has promoted the kindling production of some risk-management models. The latter have led to the proliferation of some toxic derivative products on the financial market. Hence, due to these reasons, this theory has not been able to predict the crisis. As for the Keynesians, they have responded by suggesting some practical solutions upon which the major recommendations of the G20 reside. In fact, these solutions have called upon the intervention of central banks and international organizations as well as the setting up of States Recovery Plans by the governments. Yet, the results achieved by these interventions are not yet satisfactory and these packages are harshly criticized of being short-term solutions tailored to cope with long-term problems. This from that perspective therefore, that the current crisis has challenged economists

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