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.
- Rather than economic recovery 2014 is more likely to see France return to recession
- Abenomics cannot succeed whilst real wages continue to fall in Japan
- After a two-year holiday it looks as though the Swiss Franc might be back
- If UK house prices are peaking then what happens next?
- How ex-pats can get their currency conversion right
- Some 40% more likely to do business with a challenger bank compared to a year ago
- Could markets be heading towards a 60% crash?
- The Scottish Independence vote - a 'yes' could bring Government closer to the people
- UK equity income sees £1bn net sales in July
- Energy customers warned that six fixed rate tariffs due to end on September 30th