The self-destruction of Economics (3)

flattr this!

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:

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.
Bookmark the permalink.

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

Leave a Reply