OlsenBlog

Paul Krugman argued in a recent article in the New York Times Magazine that the economics profession failed, because economists mistook beauty, clad in impressive looking mathematics, for truth. Economists developed fancy equations, because they were in love with the vision that capitalism was a perfect or nearly perfect system.  Krugman did not claim to know, where economists should go from here, but it seemed certain to him that economists have to live with the messiness of economics and incorporate the realities of finance into macroeconomics. (more…)