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.
- We can expect plenty of good news in the UK Autumn Statement
- The economy of France has decoupled from that of Germany
- Is Abenomics unleashing a real wage and cost of living crisis on Japan just like the UK has seen?
- What are the consequences of inflation and indeed disinflation?
- Will the government make peer-to-peer lending Isa-inclusive?
- Buying into the UK Industrial Renaissance
- Property - yield is important but there are other reasons to invest
- Riding the property rollercoaster
- UK savings plummet as £23bn withdrawn from accounts
- State pension age to rise dramatically for the under 50s. The young can expect to work till they're 70