Revista de Economía Institucional
Print version ISSN 0124-5996
FERRARI, César. TIME OF UNCERTAINTY: CAUSES AND CONSEQUENCES OF THE GLOBAL CRISIS. Rev.econ.inst. [online]. 2008, vol.10, n.19, pp. 55-78. ISSN 0124-5996.
In September 2007, a serious financial crisis became evident in the developed countries, due to serious mistakes in economic policy. Even against their own ideology, governments have not spared measures to reduce its effects, have failed to contain it, and it advances towards a global recession of uncertain depth and duration. The crisis has already changed the theoretical and practical paradigms that have dominated the academic and policy worlds in the last three decades. It will also cause serious effects in the fragile economic, social and political equilibriums of the developing countries, especially in Latin America because of its dependence on raw materials production, remittances and external capitals flows that are diminishing rapidly. The crisis will lead to a new state-market relation and to new paradigms with large Keynesian influence, and from this, will grow a new opportunity for Latin America, if it consolidates a new way of managing its economy.
Keywords : economic crisis; financial crisis; recession; economic policy; economic paradigms.