02312nam a22003378a 4500 CR9780511997563 UkCbUP 20180107143416.0 m|||||o||d|||||||| cr|||||||||||| 110111s2012||||enk s ||1 0|eng|d 9780511997563 (ebook) 9781107011885 (hardback) 9781107459601 (paperback) UkCbUP UkCbUP rda HB3743 .H48 2012 330.973 23 Hetzel, Robert L., author. The Great Recession : Market Failure or Policy Failure? / [electronic resource] Robert L. Hetzel. Cambridge : Cambridge University Press, 2012. 1 online resource (400 pages) : digital, PDF file(s). text txt rdacontent computer c rdamedia online resource cr rdacarrier Studies in Macroeconomic History Title from publisher's bibliographic system (viewed on 09 Oct 2015). Since publication of Hetzel's The Monetary Policy of the Federal Reserve (Cambridge University Press, 2008), the intellectual consensus that had characterized macroeconomics has disappeared. That consensus emphasized efficient markets, rational expectations and the efficacy of the price system in assuring macroeconomic stability. The 2008–9 recession not only destroyed the professional consensus about the kinds of models required to understand cyclical fluctuations but also revived the credit-cycle or asset-bubble explanations of recession that dominated thinking in the nineteenth century and the first half of the twentieth century. These 'market-disorder' views emphasize excessive risk taking in financial markets and the need for government regulation. The present book argues for the alternative 'monetary-disorder' view of recessions. A review of cyclical instability over the last two centuries places the 2008–9 recession in the monetary-disorder tradition, which focuses on the monetary instability created by central banks rather than on a boom-bust cycle in financial markets. Print version: 9781107011885 Studies in Macroeconomic History. http://dx.doi.org/10.1017/CBO9780511997563 Cambridge Books Online 236796 236796