Why neoclassical economics is dead
Author: Steve Keen
In a classic case of ‘they would say that, wouldn’t they?’, economic textbook authors McTaggart, Findlay and Parkin have recently defended economics from the criticism that it failed in not predicting, let alone preventing, the financial crisis.
They claim that ‘much economic research pointed to the emerging problem’, note that evidence ‘had started to accumulate from early 2007’, and blame the crisis itself on ‘egregious policy errors’ by the Federal Reserve.
The implication of their article is that economic theory is healthy, and that what is needed is not change, but more of the same.
Bollocks. Economics is extremely unhealthy at all levels, from introductory pedagogy to high research.