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.
- The UK current account deficit does not matter much according to the Bank of England
- The story of Banco Espirito Santo is a sad but by now very familiar one
- Are German bond yields a canary in a coalmine?
- Despite the promises real wages continue to fall in Japan
- Guest blog - planning your retirement like packing for your holiday
- The UK equity income funds that consistently deliver - and those that struggle
- Are banks now a buying opportunity for investors?
- Three payday loan advertisements banned by Advertising Standards Authority
- High Street banks out of favour with income share and fund investors, but is it time to reassess?
- Saudi Arabia - undervalued and underowned until now?