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From Crisis to Confidence: Macroeconomics After the Crash
Some would argue that the financial crash revealed failings in the discipline of economics as well as in the financial system. The main postwar approaches to economics, based on neoclassical and new-Keynesian principles and modeling, failed to anticipate the crash or the depth of the slump that followed. In this monograph, Roger Koppl, drawing on ideas from the Austrian school and the work that has been done on policy uncertainty, argues that the missing ingredient in many economic theories is a proper theory of confidence.