The self-destruction of Economics (3)

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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).

Read more: http://www.businessspectator.com.au/article/2013/7/10/economy/new-rays-sunshine-dismal-dwindling-science#ixzz2ZghIoBzl

About Steve Keen

I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.
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4 Responses to The self-destruction of Economics (3)

  1. Bhaskara II says:

    If you had no TV, or, gasp,no internet would you have time to build a little house?

  2. Bhaskara II says:

    I call IS-LM, SLIM model.

  3. JoYohana says:

    This is worth noting
    http://bit.ly/14QOl5g

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