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.
- Why are real wages in the UK continuing to fall in an economic boom?
- Is UK inflation below target (CPI)? On it (RPIX)? Or pushing higher with house prices?
- Is China finally admitting it is in an economic slow down?
- More signs of Currency Wars emerge and some songs for #Indyref day in Scotland
- Neil Woodford on the Scottish referendum: "The UK has already crossed a constitutional Rubicon"
- UK Housing Becoming a Buyers' Market? Not good for estate agents...
- "Scotland could be next Greece," warns Alan Miller
- The Alibaba roadshow runs into town but is it worth 20 times the $8bn it is aiming to raise?
- Retail investors should be wary of Alibaba hype if they have missed out on the 'IPO pop'
- Scottish referendum: A 'yes' vote will mean far greater cost burden on Scotland's state pension says report