From the
WEA's Pedagogy blog:
Kiel Working Paper 1489 | February 2009
David Colander, Hans Föllmer, Armin Haas, Michael Goldberg, Katarina Juselius,
Alan Kirman, Thomas Lux, and Brigitte Sloth
Abstract:
The economics profession appears to have been unaware of the long
build-up to the current worldwide financial crisis and to have
significantly underestimated its dimensions once it started to unfold.
In our view, this lack of understanding is due to a misallocation of
research efforts in economics. We trace the deeper roots of this failure
to the profession’s insistence on constructing models that, by
design, disregard the key elements driving outcomes in real-world
markets. The economics profession has failed in communicating the
limitations, weaknesses, and even dangers of its preferred models to
the public. This state of affairs makes clear the need for a major
reorientation of focus in the research economists undertake, as well as
for the establishment of an ethical code that would ask economists
to understand and communicate the limitations and potential misuses of
their models.
Okay but other than that....
