Some unsolved problems in economics include:

  • What is the proper size and scope of government? Where can government intervention improve on the market? Does a market failure necessarily mean that government intervention is warranted? Can intervention make things worse? If the government intervenes in a market, how should it intervene? To what extent is public ownership of assets and businesses warranted?
  • The Great Depression. What truly caused the Great Depression? Did one single event cause it? Was the United States the cause? What set the stage for it? See also: possible Causes of the Great Depression
  • The Equity premium puzzle. Can we explain the Equity Premium Puzzle? Why is it that observed average annual returns on stocks over the past century are higher, by approximately 6 percentage points, than returns on government bonds?
  • Futures contract model. Can we create an equivalent of Black-Scholes for futures contract pricing?
  • Do minimum wages cause unemployment? If so, how much? Whether or not they cause unemployment, are they an appropriate tool of economic/social policy (for example, could the same goals be better achieved through the tax and social security systems?)
  • What is the microeconomic foundation of inflation? or How do inflation arise from indiviudal agent decisisions?.
  • Is the money supply endogenous? As mainstrem economics claims, or Is it exogenous?, as Post-Keynesian economics claims.

See alsoEdit

Community content is available under CC-BY-SA unless otherwise noted.