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.
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- Paragon Bank sweeps the best buy rates
- Bank results season - what do investors need to look out for?
- Tesco scraps hated “unexpected item in the bagging area” phrase from its self-service checkouts
- Brokers are tipping BT shares as the firm reveals solid first quarter profits
- There are many reasons to avoid investing in China but we only need one
- Banks too slow to learn lessons of Libor and Forex scandals says City watchdog
- Is a September lift-off for US interest rates still likely?
- Royal Bank of Scotland enjoys rise in quarterly profits but litigation costs hit first-half numbers