Redde Rationem: Keynes, Minsky and the Collapse of Long-Term Capital Management Twenty Years Later
Abstract
The aim of this paper is to indicate, through study of the Long-Term Capital Management near-bankruptcy case, fallacies of modern financial theory. Model assumptions that determine the validity of theory must be realistic. The responsibility of academic community in the process of creating economic policy is significant since only valid theory could result in economic policies that would successfully deal with the instability of global world economy. On the other hand, if this fact remains ignored, it is reasonable to expect recurrent financial shocks in the future.
Keywords:
speculation / Minsky / LTCM / Keynes / efficient market hypothesisSource:
Etnoantropološki problemi, 2019, 14, 1, 325-360Publisher:
- Univerzitet u Beogradu - Filozofski fakultet - Odeljenje za etnologiju i antropologiju, Beograd
Funding / projects:
- Challenges of New Social Integration in Serbia: Concepts and Actors (RS-MESTD-Basic Research (BR or ON)-179035)
Institution/Community
Sociologija / SociologyTY - JOUR AU - Radonjić, Ognjen PY - 2019 UR - http://reff.f.bg.ac.rs/handle/123456789/2827 AB - The aim of this paper is to indicate, through study of the Long-Term Capital Management near-bankruptcy case, fallacies of modern financial theory. Model assumptions that determine the validity of theory must be realistic. The responsibility of academic community in the process of creating economic policy is significant since only valid theory could result in economic policies that would successfully deal with the instability of global world economy. On the other hand, if this fact remains ignored, it is reasonable to expect recurrent financial shocks in the future. PB - Univerzitet u Beogradu - Filozofski fakultet - Odeljenje za etnologiju i antropologiju, Beograd T2 - Etnoantropološki problemi T1 - Redde Rationem: Keynes, Minsky and the Collapse of Long-Term Capital Management Twenty Years Later EP - 360 IS - 1 SP - 325 VL - 14 DO - 10.21301/eap.v14i1.13 ER -
@article{ author = "Radonjić, Ognjen", year = "2019", abstract = "The aim of this paper is to indicate, through study of the Long-Term Capital Management near-bankruptcy case, fallacies of modern financial theory. Model assumptions that determine the validity of theory must be realistic. The responsibility of academic community in the process of creating economic policy is significant since only valid theory could result in economic policies that would successfully deal with the instability of global world economy. On the other hand, if this fact remains ignored, it is reasonable to expect recurrent financial shocks in the future.", publisher = "Univerzitet u Beogradu - Filozofski fakultet - Odeljenje za etnologiju i antropologiju, Beograd", journal = "Etnoantropološki problemi", title = "Redde Rationem: Keynes, Minsky and the Collapse of Long-Term Capital Management Twenty Years Later", pages = "360-325", number = "1", volume = "14", doi = "10.21301/eap.v14i1.13" }
Radonjić, O.. (2019). Redde Rationem: Keynes, Minsky and the Collapse of Long-Term Capital Management Twenty Years Later. in Etnoantropološki problemi Univerzitet u Beogradu - Filozofski fakultet - Odeljenje za etnologiju i antropologiju, Beograd., 14(1), 325-360. https://doi.org/10.21301/eap.v14i1.13
Radonjić O. Redde Rationem: Keynes, Minsky and the Collapse of Long-Term Capital Management Twenty Years Later. in Etnoantropološki problemi. 2019;14(1):325-360. doi:10.21301/eap.v14i1.13 .
Radonjić, Ognjen, "Redde Rationem: Keynes, Minsky and the Collapse of Long-Term Capital Management Twenty Years Later" in Etnoantropološki problemi, 14, no. 1 (2019):325-360, https://doi.org/10.21301/eap.v14i1.13 . .