How Did Economists Get It So Wrong?

Jason Lutes / NY Times

Paul Krugman, The New York Times | Full Story | 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. On the theoretical side, they thought that they had resolved their internal disputes. And in the real world, economists believed they had things under control. In 2004, Ben Bernanke, a former Princeton professor who is now the chairman of the Federal Reserve Board, celebrated the Great Moderation in economic performance over the previous two decades, which he attributed in part to improved economic policy making.

Last year, everything came apart. >>

Related: A year after financial crisis, the consumer economy is dead | McClatchy 09.09.08

Published 09.09.02 00:00:00 -0500 GMT | Posted by Andrew Garib on 09.09.10 | |

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