Yes, the present crisis should also lead economists to rethink the recent movement towards using real business cycle models. Like earlier, classical models, these models also posit that there should be no involuntary unemployment in the economy, an assumption that may be readily challenged by the present crisis. Real business cycle models also rely heavily on individuals having rational expectations. However, recent research on behavioural economics has emphasised that consumers are not completely rational and that factors like financial contagion, herding, and peer pressure can play a vital role in economic decisions.
Along these lines, a number of economists, such as Jeffrey Sachs and Joseph Stiglitz, have argued that the Asian Financial Crisis had more to do with over-investment in property markets and subsequent herding in currency markets than any problems in the real economy. These observations suggest that more attention should be given to integrating the results of behaviour