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 economic problems in China have put the skids under copper, iron ore and the yuan
- The Co-op shows the rotten core at the heart of UK banking
- Does Ukraine threaten the bull market?
- Halifax two and three year fixed rate ISAs jump to the top of the best buy tables
- Five things to think about if you want to let to buy
- ISA ideas: Five investment themes to play in 2014
- Mindful Money’s Monday share tips: Prudential, Morrison, Antofagasta and Homebase
- Affordability up but house price rises are swiftly eroding spending power
- Sterling corporate bond funds for this year's Isa? Advisers prefer strategic funds but offer some suggestions
- Sports Direct International a 'buy' following strong profit growth