The Coming Overhaul of Theories in Finance and Macroeconomics

The video discusses the challenges facing financial and macroeconomics, highlighting the need to revisit old economic theories in light of recent market crises. It emphasizes the reliance on historical economic ideas, such as those of Keynes and Friedman, during policy responses. The video critiques the disconnect between contemporary economic theories and practical application, stressing the importance of teaching economics as a practical discipline to solve real-world problems.

What is one of the main issues facing financial economics today?

• The decline in business school enrollments

• The need to reassess market efficiency theories

• The overemphasis on securitization

• The lack of interest in derivatives markets

Which economist's ideas were revisited during the recent economic crisis?

• Adam Smith

• John Maynard Keynes

• David Ricardo

• Thomas Malthus

What old monetary theory was applied during the crisis?

• Supply-side economics

• Monetarism

• Classical economics

• Behavioral economics

What is the critique of contemporary macroeconomic theories in practice?

• They are not considered during policy-making

• They are too focused on short-term gains

• They rely too heavily on technology

• They are overly complex for practical use

Why is it problematic to teach outdated economic theories?

• They are too difficult for students to understand

• They do not align with real-world economic challenges

• They are not supported by empirical data

• They are not popular among economists