We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
A POST KEYNESIAN VIEW OF MODERN FINANCIAL ECONOMICS: IN SEARCH OF ALTERNATIVE PARADIGMS.
- Authors
Findlay III, M. Chapman; Williams, Edward E.
- Abstract
The article presents a post Keynesian view of modern financial economics. This observation begins by finding what has happened in the area that calls itself financial economics. This subbranch of the mother discipline evolved from the ideas of microeconomists who argued that the traditional marginalist models were incomplete since they either ignored finance or assumed the firm could get all the finance it needed without constraint. The early neoclassical microfinancial theorists hence engaged themselves in an endeavor to develop an equilibrium integration of the production, investment and financing decisions. In the process, the profit maximization assumption of classical economics was carried one step further and the cardinal postulate of modern financial economic theory (MFET) was formulated. To a very large extent, the capability of a theory to explain depends upon the methodological approaches it adopts. It has become clear to many that much of MFET is essentially devoid of policy implications because it is tied to artificial analytical procedures which may be mathematically tractable but which have little basis in reality.
- Publication
Journal of Business Finance & Accounting, 1985, Vol 12, Issue 1, p1
- ISSN
0306-686X
- Publication type
Academic Journal