The Great Recession was the result not only of lax regulation in Washington and reckless risk-taking on Wall Street but also of faulty theorizing in academia. Can economists learn from their mistakes? Full Story »
Posted by Dwight Rousu - via Memeorandum
Krugman dons his economics professor hat, and provides a grand tour of macroeconomics. It is interesting if you have had a few basic courses in economics or read a bit; perhaps confusing if you do not have bearings in the lingo. Educational and interesting, and relevant to the current crisis.
Krugman does not discuss why markets may not have all information upon which to base their prices, nor when free markets do not exist because of monopoly or oligopoly. Nor does he tap into the possibility that many economists are such marginal mathematicians that they did not challenge the basis for the mathematical components of their risk models, which were demonstrably deficient.
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