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.
- Up to 200,000 are poised to cash in their pensions next April
- Government rolls out consultation on the Bank of England's powers over the UK's housing market
- Pension scammer warning as 77% say they don't know the difference between pension income reforms and pension liberation
- House prices dip in September in further sign that market may be cooling
- Retail investment sales plunge 70% in September compared to 2013
- The ECB has missed the opportunity to end the European crisis
- E.ON launches cheapest energy deal on the market as 'big six' rise to the challenge of the smaller firms
- Official numbers suggest strong rise in pension take-up as auto-enrolment gains traction
- Average UK house prices climb to all time high but growth rate eases significantly
- Selling may not be the best policy when a star fund manager quits