The Origins of the 2007-2009 Economic and Financial Crisis
The 2007-2009 economic and financial crisis revealed the structural fragility of the capitalist economy, particularly with regard to monetary and credit systems. This raises the need to reconsider the role of monetary policy and the limits imposed upon it. An awareness of the monetary essence of our capitalist economies, and of the role played by both money and banks is essential for appropriate regulation. The intrinsic limitations of the neoclassical approach, which also characterize the so-called new-consensus model, lead us to search for a hypothesis of reform based on recognition of the essential role played by credit money, as suggested by monetary circuit as well as monetary production theories, in light of Keynes's intuitions.
Financial Crisis, Monetary Circuit, New Consensus Model