THE IMPACT OF ECONOMIC CRISIS ON THE MAIN COURSE OF ECONOMIC THOUGHT

The global economic crisis has led to a different approach to economic policies in most economies. The change is in the abandonment of free market and the increasing role of the state intervention in the economy. Simultaneously, the change has caused the discussion of the validity of the dominant view in macroeconomic theory and its capability to explain the causes of the crisis and the ways out within the existing theoretical frameworks. The discussion has not been finished yet within the Neoclassical and Keynesian views existing parallelly for decades in macroeconomic theories. This paper deals with the overview of theories approaching differently to crises and cyclic fluctuations in economic activity, and also some new understandings in contemporary economic theory.

Key words: macroeconomic theory, economic crisis, neoclassical paradigm, Keynesianism

JEL Classification: B22