Understanding financial crisis through accounting models

Dirk J. Bezemer*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

61 Citations (Scopus)

Abstract

This paper presents evidence that accounting (or flow-of-funds) macroeconomic models helped anticipate the credit crisis and economic recession Equilibrium models ubiquitous in mainstream policy and research did not This study traces the Intellectual pedigrees of the accounting approach as an alternative to neo-classical economics and the post war rise and decline of flow-of-funds models in policy use It includes contemporary case studies of both types of models and considers why the accounting approach has remained outside mainstream economics It provides constructive recommendations on revising methods of financial stability assessment and advocates an accounting of economics (C) 2010 Elsevier Ltd All rights reserved

Original languageEnglish
Pages (from-to)676-688
Number of pages13
JournalAccounting organizations and society
Volume35
Issue number7
DOIs
Publication statusPublished - Oct-2010

Keywords

  • MONEY
  • INSTABILITY
  • ECONOMICS
  • CREDIT

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