Revitalizing Economics After the Crash

Signatories of this plea support the following words by Nobel Laureate Paul Krugman: "Few economists saw our current crisis coming, but this predictive failure was the least of the field’s problems. More important was the profession’s blindness to the very possibility of catastrophic failures in a market economy ... the economics profession went astray because economists, as a group, mistook beauty, clad in impressive-looking mathematics, for truth ... economists fell back in love with the old, idealized vision of an economy in which rational individuals interact in perfect markets, this time gussied up with fancy equations ... Unfortunately, this romanticized and sanitized vision of the economy led most economists to ignore all the things that can go wrong. They turned a blind eye to the limitations of human rationality that often lead to bubbles and busts; to the problems of institutions that run amok; to the imperfections of markets – especially financial markets – that can cause the economy’s operating system to undergo sudden, unpredictable crashes; and to the dangers created when regulators don’t believe in regulation. ... When it comes to the all-too-human problem of recessions and depressions, economists need to abandon the neat but wrong solution of assuming that everyone is rational and markets work perfectly." (New York Times, September 2nd, 2009.)

Sponsor

Foundation for European Economic Development (Registered Charity No. 1001277 in England and Wales) http://www.feed-charity.org

Discussion

  • ULGEN Faruk The modern economics is unfortunately area of great confusion between two opposed forces: on the one hand, the economics as a part of social sciences in quantitative reasoning about the working of a specific economy -called capitalism- and its reproduction process -called the process of accumulation-through monetary and financial relations and, on the other hand, a certain belief called the liberal doctrine which is more a philosophical and political doctrine than a positive scientifique research area and which is often manipulated by some so-called economists who believe that thinking about the economics in societal terms in their entire complexity instead of deterministic and ergodic way of rationalising the human life is a dangerous orientation which could result in a radical contestation of capitalist market economy.
    Consequently, dominant economists lead society and decision makers astray and prevent the economics (as a social science aiming at understanding the functioning of our world under some specific dynamics) from undertaking relevant decisions in order to raise the wellbeing level of people.

join the discussion

Recent signatures

  • username

    ULGEN Faruk

    1 week ago Comments: The modern economics is unfortunately area of great confusion between two opposed forces: on the one hand, the economics as a part of social sciences in quantitative reasoning about the working of a specific economy -called capitalism- and its reproduction process -called the process of accumulation-through monetary and financial relations and, on the other hand, a certain belief called the liberal doctrine which is more a philosophical and political doctrine than a positive scientifique research area and which is often manipulated by some so-called economists who believe that thinking about the economics in societal terms in their entire complexity instead of deterministic and ergodic way of rationalising the human life is a dangerous orientation which could result in a radical contestation of capitalist market economy. Consequently, dominant economists lead society and decision makers astray and prevent the economics (as a social science aiming at understanding the functioning of our world under some specific dynamics) from undertaking relevant decisions in order to raise the wellbeing level of people.
  • username

    Sue Konzelmann

    8 months ago Comments: -
  • username

    Zoe Lindesay, United Kingdom

    9 months ago Comments: -
See more

Petition highlights

There are no highlights yet.