The self-destruction of Economics (3)
This is the third article in a three-part series on the self-destruction of neoclassical economic theory. See part one here and part two here.
To say that the long self-destruction of the academic economic tradition was given a final push towards the cliff by the global financial crisis paints a pretty bleak picture of the future of the dismal science. But I can also see some rays of sunshine.
The first is to look outside the Academy, to formal economic bodies – to central banks and Treasuries in particular. In the past, these bodies uncritically reproduced whatever was the latest fad in academic economics (witness the rapid shift from IS-LM and AS-AD models to DSGE models when academic economists proclaimed that the former fell victim to the Lucas Critique).
Source: http://www.debtdeflation.com/blogs/2013/07/22/the-self-destruction-of-economics-3/#utm_source=feed&utm_medium=feed&utm_campaign=feed
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