https://the2008crisistenyearson.weaconferences.net/papers/the-transformational-role-of-the-great-recession-for-economic-governance/ 15th October to 30th November, 2018 Mon, 09 Jun 2025 12:44:39 +0000 hourly 1 https://the2008crisistenyearson.weaconferences.net/papers/the-transformational-role-of-the-great-recession-for-economic-governance/#comment-22 Thu, 08 Nov 2018 15:05:35 +0000 http://the2008crisistenyearson.weaconferences.net/?post_type=wea_paper&p=180#comment-22 I found your paper very interesting, in particular for advocating a new comprehensive and interdisciplinary governance.
As a matter of fact, one of the worrisome aspect of the post-2008 crisis is that very little has changed in economic theory and in the working of economic systems. With regard to the latter aspect, the trend of financial speculation is as strong as before, whereas the objectives of innovating and rendering sustainable real economies remain far in the background.
A central aspect for curbing this overwhelming financial course refers to monetary policy, and the governance of banking and financial institutions.
A policy action aimed at keeping at a permanent low level real interest rate would increase the Keynesian marginal efficiency of capital and then the incentive for productive investments. Moreover, a low real interest rate would help reduce the burden of interest payments on public and private debt. This reduction in interest payments, in turn, would help decrease a relevant source of economic inequalities, which has played a central role in depressing effective demand.
This measure could be accompanied by policies, (i) aimed at discouraging speculative bubbles backed by fictitious assets and (ii) fostering initiatives aimed at rendering sustainable and innovative our real economies.

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