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- W2116732554 abstract "The financial crisis and the Great Recession to whi ch it gave rise exposed the deep flaws in standard macro-economic models, and in the way those models were deployed. In this paper, based on a tal k given to the Turkish Economic Association in November 2012, Joseph E. Stiglitz discusses the range of these deficiencies and the ways in which t he models must be reformed. The paper first examines five particular issues in the current policy debate and explains why the standard model provides a misguided framework for addressing them. The paper identifies the fundament al flaws in the standard model, and argues that in trying to fine tune the m odels for “normal” periods, it failed to address the more profound question of how to explain deep downturns, including slow recoveries. A central lacuna is the lack of attention to credit and the institutions providing it. It explains how a better understanding o f banks would have led to better ways to recapitalize the banking system than those employed in the aftermath of the crisis. Finally, the paper relates all of these issues to the ongoing Euro crisis, showing in particular that the s tructure of the euro, though seemingly designed to improve the efficiency of res ource allocations, has actually created an unstable and inefficient system ." @default.
- W2116732554 created "2016-06-24" @default.
- W2116732554 creator A5074218217 @default.
- W2116732554 date "2013-01-01" @default.
- W2116732554 modified "2023-09-23" @default.
- W2116732554 title "Stable Growth in an Era of Crises: Learning from Economic Theory and History" @default.
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- W2116732554 doi "https://doi.org/10.7916/d8-a9de-5h33" @default.
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