Structural Causes to the Financial Crisis and their Discontents

J Edgar Mihelic
6 min readAug 7, 2019

James Crotty has argued that the crisis of 2007–8 was cause by structural issues in the economy, mainly derived from the deregulation in financial markets that came into being during the Reagan and Thatcher years which were given rhetorical firepower and ideological backing from economics theorists like Milton Friedman and Eugene Fama. In both “The Realism of Assumptions Does Matter: Why Keynes-Minsky Theory Must Replace Efficient Market Theory as the Guide to Financial Regulation Policy” (2011) and Crotty an earlier 2008 paper, “Structural Causes…