vIndianz.com (24 Nov, 2009) — The current financial crisis and resultant global economic slump has been the most crucial global economic event ever since the Great Depression. Now study which appears in the November issue of Strategic Organization, available by SAGE, illustrates fresh ideas and philosophies in economics from strategic management, revealing the micro-level underpinnings of the macro-level events we observe at present.
Macroeconomics experts have used conventional theories to comprehend the causes of the economic crisis and recommend innovative schemes and ideas for revival. These negotiations about fiscal and monetary policy conquered much of the discussion about the crisis and what to do about it, according to one of the authors Peter Klein, from the Division of Applied Social Sciences, University of Missouri.
Klein and his co-authors squabble that macroeconomics is not prepared to offer complete solutions to this crisis. Its fundamental assumption is that factors of production, firms, and industries in the economy are homogeneous and exchangeable. Study in strategic management has time and again revealed that the supposition that the economy is made up of homogeneous or interchangeable factors of production is inaccurate.
Strategic management theory—with its stress on heterogeneously spread and rather immobile and inelastic resources and capabilities is prepared to open the debate to fresh ideas for the revival.
The initiative that resources, firms, and industries are diverse from each other, that capital and labor are focused for particular projects and activities, and that people (human capital), are distinctive, is continually encountered in strategic management theory and practice. That macroeconomic models presume factors of production in an economy are homogeneous is appealing, the authors point out, because this assumption creates troubles for macroeconomics in both explanation of the current crisis, and in deriving solutions.
Further Reading- India-US association to concentrate on five Es
- Additional economic recovery witnessed in India, China, Australia
- Factors from Common Human Bacteria might set off Multiple Sclerosis
- Hitting the markets soon, ‘the Pill’ for men
- Yen rises to 14-year high against dollar
- Google Project 10^100 update ‘within a month’
- Hyundai Group aims to enhance car sales by 17% in 2010
- TCS to Hike Salary
- 2010 to fetch 50K IT jobs
- Central Govt ought to show us a way: Andhra CM
Stay updated! Follow us on twitter and subscribe to our feed via Feedburner.
Loading ...
No Comments