Saturday, August 8, 2009

What went wrong with economics?

Another article criticizing the economics profession:

http://www.economist.com/opinion/displayStory.cfm?story_id=14031376

Economics
What went wrong with economics
Jul 16th 2009

My comment: I don't think it was "Economics" that went wrong, but rather the libertarians, market fundamentalists, and rational and efficient markets theorists (aka Alan Greenspan and the Chicago School).

The deregulation of financial markets was the problem, not the solution (as Krugman, Shiller, Akerlof, Stiglitz and other Nobel-prize-winning economists have pointed out).

I would highly recommend the book "Animal Spirits", by Akerlof and Shiller:
http://press.princeton.edu/titles/8967.html

Akerlof and Shiller mention greed and corruption among their "animal spirits".

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