ABSTRACT
This chapter develops two main ideas. First, it investigates how neoliberal economists such as Jean Tirole analyse the financial crisis and its causes. It argues that their main explanation for the collapse of the financial system is the failure of public supervision of financial markets, an explanation that remains within the neoliberal framework. In other words, and contrary to popular belief, the financial crisis has not prompted a revision of the neoliberal doctrine. Secondly, the chapter examines the theoretical limits of the neoliberal view by studying the complex interactions between information and prices. This examination shows why it is not possible to assert that market prices do indeed reflect all available information. An alternative institutional theory of markets is proposed. In its last section, Chapter 6 argues that although the 2021–2022 inflation surge has pushed central banks to adapt their public statements, monetary policy cannot return to monetarism and is likely to stay largely accommodative in the future. This situation effectively marks the end of the neoliberal doctrine.
