El Reto de Edmund Phelps: Las Crisis y los Modelos Económicos

The paper attempts an explanation of the alleged "lack of adequate economic models" to predict and eventually avoid - using certain policy recommendations - the recurrent financial and fiscal crises, and finally, economic crisis, recurrently registered in the world. From author opinion, in the controversy over the "rational expectation" approach and the new design method of dynamic and stochastic models, have been neglected some important underlying issues in economic performance, as the very crucial institutional basis on which activities of economic agents operate, including as such particularly to governments. The Public Choice school and modern Institutional Economics can help to understand the limitations and possibilities facing economic theory in improving its status as "science."