By Mark Buchanan – Several years ago, most people took the financial catastrophe of 2008 as definitive proof of profound errors in economic thinking. Some academic economists even lamented the discipline’s failure.
Mirowski argues that significant change would threaten the standing of the economics profession. Much of economists’ authority stems from their claims to insight on which policies will make people better off. Those claims arise from core theorems of mathematical economics — known as welfare theorems — which in turn depend on some wildly implausible assumptions, such as the idea that people are perfectly rational and make decisions with full awareness of all possible futures. more> http://tinyurl.com/m5sdrfq
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