Some [economists] warned of a housing bubble, but almost none foresaw the resulting cataclysm. An entire field of experts dedicated to studying the behavior of markets failed to anticipate what may prove to be the biggest economic collapse of our lifetime. And, now that we're in the middle of it, many frankly admit that they're not sure how to prevent things from getting worse.I've taken heat here in the past from an academic economist who argues that my musings on economic relationships have little to do with what he does in the field of economics. If the Boston Globe writer's analysis is on target, it seems that his field has little to do with reality, because economists assumed that practical economic questions were answered. In a crisis, practical matters count as so much more than abstract games.
As a result, there's a sense among some economists that, as they try to figure out how to fix the economy, they are also trying to fix their own profession.
Sunday, December 21, 2008
It appears that the academic field of economics is neither a hard nor an exact science: