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 you should invest in emerging markets now
- Will you still need to carry cash in five years' time?
- Aberdeen targets diversification with new fund launch
- Market turmoil: what the savvy investors are buying
- How much will it cost to send your children back to school?
- Thousands of HSBC customers left without cash for bank holiday after payment system failure
- Bank holiday warning from motor insurance company
- Market woes sees consumers confidence dip
- Forget summer, you need to start thinking about Christmas
- No universal agreement on just how weak China is