Email this article NEOCLASSICAL PARADIGM AND CAUSES OF THE MODERN ECONOMIC CRISIS
- Authors: Sevast'yanova E.P.1, Sevastyanova EP1
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Affiliations:
- Issue: Vol 12, No 3 (2011)
- Pages: 232-237
- Section: Articles
- URL: https://journals.eco-vector.com/2712-8970/article/view/516477
- ID: 516477
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Abstract
This paper compares the fundamental postulates of neoclassic paradigm and Keynesian model with the modern
capitalism. It shows that neoclassic paradigm, which underlies economic structure of major countries, is inadequate to
the essence of market economy. The research concludes that the current crisis in the countries with both advanced and
developing market economy has happened because their economic structures, each on its own way, have ignored the
requirement of the systematic government regulation due to basing on neoclassic paradigm. Keynes model, which in
fact has never been implemented, may be a base for a revised holistic, stable, and robust economic structure - for a
new capitalism.
capitalism. It shows that neoclassic paradigm, which underlies economic structure of major countries, is inadequate to
the essence of market economy. The research concludes that the current crisis in the countries with both advanced and
developing market economy has happened because their economic structures, each on its own way, have ignored the
requirement of the systematic government regulation due to basing on neoclassic paradigm. Keynes model, which in
fact has never been implemented, may be a base for a revised holistic, stable, and robust economic structure - for a
new capitalism.
Keywords
References
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