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.
- Green energy provider Ecotricity cuts gas bills 7%
- Dividend delights: 3 shares set to deliver sustainable income
- Three investment strategies to help investors navigate volatile markets
- Why you should stop panicking about markets and get greedy
- “Currency markets display extremes of risk aversion”
- British Gas and EDF price cuts "not good enough"
- Japan: why you should invest now
- Dramatic rise in buy-to-let investors set to drive home prices even higher
- Broker view: Why Rio Tinto shares are a 'buy' despite the group enduring a full year loss of $866m
- Five ISA essentials to make the most of your money