Some Cultural Foundations of Financial Macroeconomics
1 Department of Economics, St Andrew’s College, Bandra (West), Mumbai 400 058, India;
2 Reserve Bank of India Professor of Economics, University of Mumbai, Mumbai 400 098, India
* Corresponding author:
* Author to whom correspondence should be addressed.
Received: 13 Jan 2021 / Accepted: 23 Feb 2021 / Published: 8 Mar 2021
Abstract
Mainstream economists concede that finance tests the deductive powers of the microfoundations model. Accordingly, we attempt to derive a structural model inductively through use of empirical studies and history. Culture is the means by which a task is set about. The term consists of the following elements. The unit of analysis is groups or classes as found in National Income accounts. The connection between them does not consist of substitution effects or conflict but complementarities and cooperation. Secondly, the economy is defined as the inseparable composite of the fiscal and the monetary authorities and the components of the private sector. Finally, finance eases the flow of production and consumption and investment. However, banks are beset with problems of asymmetric information and runs. Additionally, market finance is prone to bubbles and crashes. Elements of culture are required to hold fast during the interactions between the financial and the real world.
Keywords: financialization; team equilibrium; morality
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CITE
Correa, A.; Correa, R. Some Cultural Foundations of Financial Macroeconomics. JBAFP 2021, 3, 4.
Correa A, Correa R. Some Cultural Foundations of Financial Macroeconomics. Journal of Business Accounting and Finance Perspectives. 2021; 3(1):4.
Correa, Amelia; Correa, Romar. 2021. "Some Cultural Foundations of Financial Macroeconomics." JBAFP 3, no. 1: 4.
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