The problem with mainstream economists is that they have a model that they believe in. They believe in it absolutely. It has become part of their core identity. And because the model is pure and perfect in their eyes it is therefore obvious that everything in the world must be adjusted to fit the model.3spoken
So we end up with governments that have their hands tied, we end up with persistent unemployment and we end up with silly inflexible system designs like the Euro.
And when the real world throws up endless evidence that the model is utterly wrong, the mainstream economists scream that, no, the world must be forced back into the model.
New Keynesian? More like New Procrustean
Neil Wilson
Model fetishism or ideological advocacy?
