Monday, October 8, 2018

John T. Harvey — The Nobel Prize And Keeping Economics Real

I wholeheartedly agree with our newest Nobel Laureate. Quite right that a large chunk of mainstream macroeconomics has made itself irrelevant. I’m not sure about the thirty years estimate as my feeling is that it goes back even further, but that’s an academic question. Regardless of when it started, the bottom line is that we are in a terrible place today. Economics graduate students are increasingly avoiding taking specializations in macroeconomics and our discipline was hopelessly ill-prepared to predict or explain the financial crisis.…
It’s kind of hard to understand a crisis that occurs in a sector you don’t bother to model....
If this is the current state of affairs, how can we possibly avoid another breakdown? We can do so by listening to other opinions. This is the one place where I want to disagree with Dr. Romer. He laments on page 20 that there are “few other voices saying what I say.” Actually, there are many others, but they lie outside of the mainstream and thus remain unheard. Mainstream economics has become an extremely closed club, to its (and the general public’s) great detriment....
Forbes — Pragmatic Economics
The Nobel Prize And Keeping Economics Real
John T. Harvey | Professor of Economics, Texas Christian University

1 comment:

AXEC / E.K-H said...


Economics is one of the most embarrassing scientific failures of all time. The four main approaches ― Walrasianism, Keynesianism, Marxianism, Austrianism ― are mutually contradictory, axiomatically false, materially/formally inconsistent and all got the pivotal economic concept profit wrong.

The Bank of Sweden is legitimized to award prizes to whomever it wants and to push any political agenda it wants. The Bank, though, is NOT legitimized to declare economics as science well knowing that economics has not lived up to scientific standards since the founding fathers.

The “Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel” is a deception of the general public because there is NO such thing as “Economic Sciences”.

The Profit Theory is False Since Adam Smith

Economics: 200+ years of scientific incompetence and fraud

The real problem with the economics Nobel

Why does Heterodoxy not abolish the fake Nobel?

Legitimacy lost

For details of the big picture see cross-references Failed/Fake Scientists

Egmont Kakarot-Handtke