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 are the two areas of economics that are currently being questioned?

How has the financial economics theory been affected by recent market changes?

What historical economic theories were revisited during the recent crisis?

What is the significance of the real business cycle theory in the context of the current economic situation?

Why is it problematic for economists to teach outdated theories in light of contemporary economic challenges?