Economic Science and Financial Crisis
The article says the crises of economic life are making a major contribution to economic science, while having a lasting impact on economic policy, public communications and corporate governance. It adds that the current financial crisis has affected all spheres of the social system. It will likely bring about the development of new approaches to understanding the events, plus a restructuring of public policy and economic relations. The paper covers the issue of why enlightened economic science could not have prevented the onset of the crisis. It examines the interpretations given by different scientific schools to explaining the causes of crises, noting that all schools agree that in eras of crisis political leadership is needed to return stability to the financial sector. According to the document, the market and state have always coexisted, but their relationship changes in the face of economic fluctuations. Many experts have criticized a variety of supervisory and regulatory bodies, blaming them for the financial woes. More recently, the public has shifted its criticism to politicians. In this regard, a tendency currently exists to streamline and harmonize supervisory and regulatory activities. However, this movement is only in its early stages, and discussions concerning its prospects appear to be premature. In conclusion, the blueprint covers the positive trends toward regulating the ongoing financial crisis, which include active lending policy and accurate in-depth calculations. It does this while at the same time considering the market's dysfunction in terms of different schools and analyzing the causes of the current financial and economic crisis since its inception in the U.S.