ABSTRACT
Ben Shalom Bernanke, Chairman of the Federal Reserve Bank, stated at the height of the financial crisis that not to have intervened in the solvency of the institutions of the financial system and to have allowed important constituents of the system to disintegrate unimaginable consequences to the real economy. Financial crisis of 2008 and its consequences on the real economy will rest high in the agenda of governments for years to come. First governments need to search for more effective methods of market stabilization and perhaps find mechanisms that dilute the dependency of the real economy upon the vagaries of financial institutions. Secondly governments should be able to better monitor the behaviour and scope of intervention of these organizations on the economy and the lives of people. The abandonment of the Keynesian paradigm and its underlying conceptual architecture, where government intervention in the economy was pivotal, was followed by neoclassical monetarism and supply-side economics.
