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.
- Compulsory in-car cameras to cut insurance costs: would you object?
- Retirees raiding pensions next year risk huge tax bills
- Three options for investors to ride out FTSE turmoil
- Bond markets are pricing much weaker growth
- Bank of England chief economist 'gloomier' on outlook for UK
- Pensions minister calls for 'unwinding' of annuities bought pre-pension reform
- Find out which FTSE 350 chief earned 2,000 times the living wage last year
- Mindful Money's weekly shares watch: Tesco, GlaxoSmithKline & Unilever
- Second steppers need to find £60k to move home
- Gov't consults on third-way ISA for P2P lending