Economic Science Discredited: A French View
Sunday, September 6th, 2009She’s known mainly for being ultra-polite and proper, God bless her, but even Queen Elizabeth II reached the point at the end of last year when she couldn’t restrain herself anymore from asking, while visiting the London School of Economics, “How could no one have foreseen it?” “It,” of course, was the catastrophic banking/financial breakdown that had come to its terrifying climax the previous September – almost one year ago now – and plunged most of the world into grave economic troubles, her own sovereign realm definitely not excepted.
Putting Her Majesty’s query in another form, How did economists get it so wrong? Or, if you like: What were they thinking? Whichever way it is stated, the issue is no doubt a complicated one, not to mention rather embarrassing for that profession of economists from which one might still assume that the best answers might ultimately come. And by now they are coming: the previous two hyper-links, in fact, take you directly to major pieces on the evident failure of modern economics by Paul Krugman (in the New York Times Magazine) and by Francis Fukuyama (together with Seth Colby).
But all of that is in English and so readily accessible. (Well, you’re going to have to subscribe to The American Interest if you want to read all of the Fukuyama/Colby piece, but the Krugman is all there and is really a “must-read.”) For our EuroSavant purposes, let’s consider instead an analysis piece just out in the French newspaper-of-record Le Monde by editor-in-chief Frédéric Lemaître: The crisis puts back into question economists’ knowledge and status. (more…)
