community stories for southern Nevada

Posts Tagged ‘denial’

How Did Economists Get It So Wrong?

Paul Krugman’s recent article from the New York Times Magazine:

It’s hard to believe now, but not long ago economists were congratulating themselves over the success of their field. Those successes — or so they believed — were both theoretical and practical, leading to a golden era for the profession…

…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.