The affects from the financial crisis over the agro economy in developed and developing countries with a Review for Republic of Macedonia

Josheski, Dushko and Gogova Samonikov, Marija (2009) The affects from the financial crisis over the agro economy in developed and developing countries with a Review for Republic of Macedonia. Emerging Markets Economics: Macroeconomic Issues & Challenges eJournal, 3 (68). pp. 1-6.

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Abstract

The aim of this paper is to examine current macroeconomic thought about
economic and financial crisis. Since 1960’s two schools of thought are pre-dominant
in macroeconomics Keynesian and neo-classical. Many authors from neo-classical
economists such as Robert Lucas (1976), gave a critique to macroeconomic policy
and characterize the existing macroeconomic models that relied upon historical
aggregate data to design macroeconomic policy as useless. They couldn’t help to
design a macroeconomic policy. Many authors point out on crisis as all bad things
that could happen to good investors. Asymmetric information’s create agency
problems between investors and firms. Asymmetric information’s can distort efficient
investment choices (investors may choose less efficient projects). These may also, as
a consequence increase monitoring costs, for the investors. This will also reduce netwelfare.
Perhaps the paradox of developing countries, and industrialized economies
commonly subsidize agriculture is the question that raised the most attention in this
regard. Existing view in the macroeconomics is that more attention should be given
on deviations from an established path of agricultural protectionism. In the past period
over the years eloquent pleas were written by the agricultural economists for less
government intervention in agricultural markets. While their arguments are
persuasive, the demand for government intervention expressed through the political
process remains strong. However, in conclusion on this part as a task of new agroeconomists
is to look for new policy directions.

Item Type:	Article
Subjects:	Social Sciences > Economics and business
Divisions:	Faculty of Tourism and Business Logistics
Depositing User:	Dusko Josevski
Date Deposited:	23 Nov 2012 08:43
Last Modified:	20 May 2013 09:06
URI:	https://eprints.ugd.edu.mk/id/eprint/1808

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