Open AccessA MULTI-DIMENSIONAL POLICY FRAMEWORK FOR ANALYZING AND RESPONDING TO GLOBAL ECONOMIC CRISES
Author(s) -
Octavian Moldovan,
David J. Barnes
Publication year - 2017
Publication title -
scholedge international journal of business policy and governance
Language(s) - English
Resource type - Journals
ISSN - 2394-3351
DOI - 10.19085/journal.sijbpg040301
Subject(s) - context (archaeology) , rationality , politics , monetary policy , economics , globalization , financial crisis , political science , irrational number , public economics , economic policy , positive economics , macroeconomics , market economy , paleontology , biology , law , geometry , mathematics
This paper builds a Holistic Evaluative Model (or HEM) to analyze crises responses, focusing on multiple narratives (explanations) from fields as varied as economics, political science, finance and public policy. A broader framework equips policymakers with more options to shape responses to crises which routinely occurred during the last 75 years of heightened globalization. A HEM reflects the actual process of policy evaluation by combining data across different fields with a valid approach clear enough to discuss increasing opportunities to ameliorate crisis impacts. Even if they are identified, policymakers may not directly influence the causes of crises, which for 2007-2009 included (a) limited market corrections; (b) regulation deficiencies (c) systemic risks; (d) irrational behaviors; (e) informational complexities and (f) cultural failings (that exacerbated these inefficiencies), but they can focus on developing and implementing adequate policy responses. As such, HEMs increase options over a siloed approach by incorporating multiple theoretical tools, dynamic ripple-effects and diverse stakeholders – simultaneously evaluating monetary-fiscal policy, actor rationality, systematic risk and the cultural context.