Not only did the global financial crisis catch the vast majority of economists completely unawares, they instead expected tranquil and even buoyant times just as the biggest economic crisis since the Great Depression began. My favourite such observation is from the OECD‘s Economic Outlook for June 2007—in which the Chief Economist suggested that, “the current economic situation is in many ways better than what we have experienced in years . . . Our central forecast remains indeed quite benign.” But there are countless other such utterly wrong prognostications about the economy, from the profession that is supposed to be the font of wisdom on the economy.
Those “in the know” understand that this is not an isolated failing. The Neoclassical model that dominates economics today is riven with logical and empirical fallacies. If economics were a real science, it would have long ago been overthrown and replaced by something more realistic.
Yet at least 90% of academic economists believe in this model, as do almost all economists working in government and private industry. […]
Latest posts by Tombuktu (see all)
- Pareto at Melos | Cosma Shalizi - September 13, 2012
- The G192 report | Robert H Wade - August 15, 2012
- Can Europe’s Mainstream Left Reconnect with Socialism and Economic Democracy? | Nyegosh Dube - July 17, 2012
- Mark Ames | The Quiet Extermination Of Labor Rights From Human Rights - June 25, 2012
- Chris Dillow | Marx was right - March 20, 2012