Acta Oeconomica Pragensia 2012, 20(1):3-12 | DOI: 10.18267/j.aop.354

Contemporary Economics Dilemma: High Ethics or More Extensive Governing?

Jaroslav Daňhel, Eva Ducháčková

Vysoká škola ekonomická v Praze, Fakulta financí a účetnictví (jaroslav.danhel@vse.cz, eva.duchackova@vse.cz).

The authors of the article point out that economic theory has failed to yield a solid theoretical background in critical situations such as the current financial and economic crisis and the transformation of post-communist economies. Mainly the present crisis opens the question of the unsatisfactory status of economic science. While classical liberal or Keynesian concepts are failing, theorists cannot look to mathematical modelling for help. It seems that traditional concepts malfunction, and the financial market is particularly predisposed for this process. The application of mathematical models is overvalued. The article calls attention to the possible influence and adequacy of regulatory attitudes on a return to equilibrium. It seems that the part of ethics must be upgraded decidedly. The challenge for today's theoretical economists is to find a new paradigm of economic science for today's global era.

Keywords: paradigm of economic science, financial and economic crisis, crisis of the welfare state model, regulatory projects, ethics of economic interaction, new architecture of regulation of financial markets, debt problems of the Euro area

JEL classification: A11, B41, D69, G01, G20, G21, G22, G28, G29, K29

Published: February 1, 2012  Show citation