rationalist

What If the Economic Model Is Wrong?

This is exactly the right question!
Unfortunately the answers above are not so right...

the problem is that people (governments, inverstors, etc) are using the wrong economic model. Both Keynes and monetarists are not correct with regard to how they describe economy.

The school that is most close to the trith is the Austrian School (it is called so because it's founding fathers come from Austria; i would rather call it the "capitalist school", since a central piece of it is the theory of the structure of capital).

Anyway - on this site there is a very good, simple and illustrative powerpoint. Take 15 minutes to look at it and you will gain a basic understanding what this school is talking about:

www.auburn.edu/~garriro/ppsus.htm

Also check out
mises.org
for a wealth of literature, critique, commentary on current events, etc.

So - the answer to the question above is - yes we have been using a wrong model; but the right model is not some new, undiscovered yet idea of the type we have been served over and over again by management gurus. The correct model was created 100 years ago. It is just that what it prescribed would call for dismantling of our ill-conceived banking system and in this way - for a serious limitation of government power.