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.
- How do we defuse the UK student debt time bomb?
- The Bank of England blows its own trumpet but what purpose is it now serving?
- Spain continues a more than welcome economic recovery
- The UK economy breaks new ground or rather the service sector does
- Can Twitter become a viable alternative to Facebook?
- "Should I stay or should I go?" What to consider if your investment fund is under-performing
- Government incentive to encourage retirees to delay taking state pension slashed by almost 50%
- Your glasses may be stylish but is your eye test more important? The MM interview
- Which towns pay the highest amount of income tax in the UK?
- First Time Buyers pushed even further out of the property market