I start by summarizing the views of Keynes on recessions and of Schumpeter on economic growth. I then point out that recently some economists have taken a socio−political perspective in looking for causes for the financial crisis and the handling of the recession which followed the financial crisis. Such a socio−political per− spective introduces an ethical dimension in economic thinking. I then connect that ethical dimension of economic thinking to Musgrave’s ethical economic concept of merit goods and my own creation of merit good categories. Next, I contrast the Reinhart/Rogoff view of the financial crisis with the one developed by Reich/Rajan. In my conclusion I then show how the Reich/Rajan approach makes use of seven of my eleven merit good categories to clarify the 2007−2008 financial crisis and the subsequent recession. In doing so I am able to highlight the ethical dimension in the Reich/Rajan analysis of the recent financial crisis and the recession it caused.
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.