A General Theory of Macrofinance: Towards a New Paradigm

  • Yulu Chen People’s Bank of China, Beijing, China
  • Jack W. Hou Huazhong University of Science and Technology, School of Economics, Wuhan, China; California State University, Department of Economics, Long Beach, USA
  • Yong Ma Renmin University of China, School of Finance, Financial Research Center, Beijing, China
  • Chengsi Zhang Renmin University of China, School of Finance, Financial Research Center, Beijing, China

Abstract

The 2008 international financial crisis triggered retrospection on both theory and policy, reaching a macroeconomic consensus that the financial system plays an important role in the macro economy and macroeconomic theory must be restructured to incorporate endogenous financial factors. Reflecting on the inherent flaws of traditional mainstream economics, this paper puts forward a “macrofinance” proposition as a new paradigm for macro financial analysis. As a scientific methodology based on systematic logic, the major feature of the macrofinance framework is that we must analyze the financial system as a core part of a complete and endogenous analytical framework, instead of only focusing on the money or credit. The goal of “macrofinance” is to return to scientific economic methodologies by analyzing the inherent laws of modern financial systems to set up a comprehensive theoretical framework that unifies the financial sector with the real economy and combines theory and policy practice.


Key words: Macrofinance, Financial system, Real economy, Methodology.
JEL: E52, E58, E61.


Međunarodna finansijska kriza iz 2008. izazvala je retrospektivu kako teorije tako i politike, postizanjem makroekonomskog konsenzusa o tome da finansijski sistem igra važnu ulogu u makro ekonomiji, i da makroekonomska teorija mora da se restrukturira kako bi se inkorporirali endogeni finansijski faktori. Razmatrajući inherentne nedostatke tradicionalne mainstream ekonomije, rad predstavlja predlog “makrofinansija” kao novu paradigmu za makro-finansijske analize. Kao naučna metodologija zasnovana na sistematičnoj logici, glavna karakteristika makrofinansijskog okvira je da moramo analizirati finansijski sistem kao glavni deo potpunog i endogenog analitičkog okvira, umesto samog fokusiranja na novac ili kredit. Cilj “makrofinansiranja” je da se vrate naučne ekonomske metodologije kroz analizu inherentnih zakona savremenih finansijskih sistema kako bi se uspostavio sveobuhvatni teorijski okvir koji ujedinjuje finansijski sektor sa stvarnom ekonomijom i kombinuje teoriju i političku praksu.


Ključne reči: Makrofinansije, Finansijski sistem, Realna ekonomija, Metodologija.

How to Cite
Chen Y., Hou J.W., Ma Y., & Zhang C. (2017). A General Theory of Macrofinance: Towards a New Paradigm. Panoeconomicus, 64(5), 547-570. doi:10.2298/PAN151201036C
Section
Original scientific paper