The Financial Crisis and the Systemic Failure of the Economics Profession

@inproceedings{Colander2009TheFC,
  title={The Financial Crisis and the Systemic Failure of the Economics Profession},
  author={David Colander and Michael J. Goldberg and Armin Haas and Katarina Juselius and Alan Kirman and Thomas Lux},
  year={2009}
}
Economists not only failed to anticipate the financial crisis; they may have contributed to it—with risk and derivatives models that, through spurious precision and untested theoretical assumptions, encouraged policy makers and market participants to see more stability and risk sharing than was actually present. Moreover, once the crisis occurred, it was met with incomprehension by most economists because of models that, on the one hand, downplay the possibility that economic actors may exhibit… CONTINUE READING