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.
- One in seven retiring this year have no pension savings
- More than 20 million UK consumers claim they will switch banks to access mobile payments
- Can currencies save economies?
- Royal Mail shares are a ‘hold’ given the challenging market backdrop
- Newton loses star fund manager Jason Pidcock to rival Jupiter
- Convertible bonds - the underappreciated asset class?
- Two million Britons leave bank details in plain sight
- Mortgage lending dips but house price growth is expected to accelerate
- Why there is lots of potential upside to the weaker US dollar right now
- Latest eurozone PMI points to slowdown