The Origins of the 2007–2009 Economic and Financial Crisis Some Thoughts in the Tradition of Keynesian Monetary Theory

The 2007-2009 economic and financial crisis revealed the structural fragility of thecapitalist economy, particularly with regard to monetary and credit systems. This raises theneed to reconsider the role of monetary policy and the limits imposed upon it. An awarenessof the monetary essence of our capitalist economies, and of the role played by both moneyand banks is essential for appropriate regulation. The intrinsic limitations of the neoclassicalapproach, which also characterize the so-called new-consensus model, lead us to search for ahypothesis of reform based on recognition of the essential role played by credit money, assuggested by monetary circuit as well as monetary production theories, in light of Keynes 'sintuitions.