Real world economists and the economics curriculum
from Maria Alejandra Madi and WEA Pedagogy Blog
Keynes’ attempt to re-shape the world order in the 1940s highlighted the need of an international currency system that might only work by means of a “wide measure of agreement”, that is, by means of the creation of a new international convention. In Keynes’ time, this convention would rely on multiple needs: an international currency, a stable exchange rate system, redistribution of international reserves, stabilizing mechanisms, sources of liquidity, besides a central institution to aid and support other international institutions related to the planning and regulation of the world economic life. In our times, new convention-conducing institutions could foster financial regulation.
As global finance has subordinated the outcomes of social reproduction, the main question is, as Hyman Minsky warned, Who will benefit? The recent global crisis has indicated that the structure and dynamics of current global finance, as a historical set of institutions, products, procedures, behaviors and policies have potentially materialized the risk of collapse of the financial system with deep negative consequences for the real economy and society. In order to support sustainable development, it’s time to stimulate students to rethink global finance, as well as its policy agenda about global and corporate governance, prudential regulation and supervision of systemic risk. read more