In this article you can see how mainstream is struggling to explain current and future economic events.
Whether AE will be named on textbooks or its ideas and methodologies stolen is (in my opinion) a very important issue.
The Great Recession will soon be over (at least ), we are yet to see how “economists” will remodel the new academic failures of mainstream economics.
Thanks in advance for sharing your thoughts.
While I think that there will be some slight and hurried talk on how excessively low interest rates fuel asset bubbles, I don’t believe schools will start to teach Austrian economics en masse, or any at all. The Ivy League elite (the place where most of neoclassical economic theory seems to come from these days) is way too grounded in its belief of managed markets and mathematical methodologies to admit their ideas are wrong and try a different approach. In fact what the new books/theories will teach is how free markets don’t work, how the heavy collaterization of debt obligations were fueled by the “lack of regulation” in the financial markets.
This. My theory of academe is that the establishment intellectual always has the perverse incentive to prevent any progress to retain status. It is always from outside that progress is made. Academics are merely dispensers of the official line.
(emphasis added)
This. And to expound on this idea, learn how men become free when they becomes too expensive to govern.
Keynesian economics was definitely in line with the prevailing orthodoxy.
I don’t know why you are saying this.
More that likely additional collapses in other nations will keep the pressure on the current narrative enough to spawn a generation of minority (intellectual) thinkers that will have some influence over the future narrative. That doesn’t guarantee a paradigm shift, but it does promise that this is not the end of the fight.
No, the current depression is not over. Austrians would be well advised to continue to point out that malinvestment was not allowed to collapse, and the structure of production was prevented from becoming less round about. This, of course, would have been far more painful than what has happened to this point. Living standards would actually decline as a consequence of the shift in the production structure back toward sustainability.
The intervention prevented nothing in the longer run. The malinvestments have been propped up, capital and real savings are being consumed and squandered at this very moment. This is a temporary bounce (April, 2010). The next downturn will be more vicious than the most recent one. This is the lesson of sound economics, I believe.
As for the mainstream accepting the lessons of sound ecoomics, it will never happen. They have everything to gain from supporting the interventionists, and nothing to gain from supporting sound economics.
I fear you could be right…I hope you are wrong.
Absolutely! Whatcha waitin’ for? Jump that train – catch that plane – or start your OWN friggin’ game!
Come on, folks, do it now and don’t blame anybody else for holding you up.