Economic Consequences Of The Financial Crisis - A Keynesian Point Of View

In spite of strong empirical evidence of structural instability, mainstream macroeconomics continue postulating that individuals make optimal intertemporal decisions, as if it was sensible to base long-term decisions on the current knowledge of a system which is likely to change at any time. The mainstream's system has well known self adjusting properties that do not allow for any kind of 'Economic crisis' (in the sense of a durable slump in markets performances given the degree of competition), although imperfect competition may keep the system away from the 'First best optimum'.