Econ 479

The Art of Writing, the Science of Economics

Economists and the Crash

Paul Krugman on the failure of academic economists to predict the market’s fall:

“The main division was between those who insisted that free-market economies never go astray and those who believed that economies may stray now and then but that any major deviations from the path of prosperity could and would be corrected by the all-powerful Fed. Neither side was prepared to cope with an economy that went off the rails despite the Fed’s best efforts.”

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Written by gregorymcnamee

September 4, 2009 at 4:58 am

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