The end of economics as we know it
- 26 June 2012
Guest post by Ian Fraser
I don't know if it is just me, but I am increasingly detecting parallels between the Laputans so amusingly portrayed in Swift's 1726 satire and today's neo-classical economists. It's not just that their island floats in the sky at varying heights above the real world but also because they are so obsessed with beautiful equations, relating to theoretical maths, science, music, and technology that they are incapable of putting their wonderful knowledge to any practical use.
These economists have played a key part in shaping our macroeconomic policy and, to a large extent, guided the trajectory of global finance for the best part of three decades.
There is now a growing clamour of dissent from a group of ‘new economists' who are calling time on neoclassical economics and shaking it right down to its Laputan foundations.
This series is written for those who would like an introduction to the key players in this bid to define a new economic paradigm that takes more of the real world into account.
- What the Greek 'no' vote means for investors
- Greece says no to austerity package. Eurozone politicans consider the options but split between hardliners and compromisers
- Will Greek crisis put an end to market complacency?
- Millions are paying too much for energy, says watchdog
- Greek 'no' vote: key events to watch
- Greece latest: eurozone facing "a new reality", fresh talks tomorrow
- Half of Brits say Inheritance Tax is the most unfair duty
- Treasury may have under-estimated its tax windfall from pension freedoms by £350m
- FTSE drops on Greek 'no' vote
- The Share Centre tips St James's Place