Monetary Economics and the crisis: monetary economy in crisis? Inaugural lecture by Professor Berk [8 October]

In his inaugural lecture, professor Jan Marc Berk addresses the question what lessons monetary economy must learn from the financial crisis, of which our country is still suffering the consequences. Macro-economic science has gotten a lot of criticism, not only because economists did not see the crisis coming, but also because they had even excluded the possibility of such a crisis in advance.

Berk says that the latter is due to not taking the monetary nature of macro-economy seriously. Monetary phenomena are an intrinsic part of our economy, and a better understanding of the role and risks of these phenomena should be at the center of attention.

Money is not something we can live without, but it's a tool that makes our lives easier. Money is the answer that societies have developed to face a fundamental uncertainty, namely our uncertainty about the creditworthiness of others. During the credit crisis we have experienced how paralyzing that uncertainty can work. The alternatives for money that were developed then, left too much room for doubts about creditworthiness.

According to professor Berk, in science there should be more interaction between business economics and general economics. In research as well as teaching. Policy makers should be aware of the limitations of economic science: questions should be seen from multiple angles.