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Uneconomic Economics and the Crisis of the Model World

  • Matthew¬†Watson

About this book

Introduction

What has gone wrong with economics? Economists now routinely devise highly sophisticated abstract models that score top marks for theoretical rigour but are clearly divorced from observable activities in the current economy. This creates an 'uneconomic economics', where models explain relationships in blackboard rather than real-life markets.

Keywords

global financial crisis economists' model world orthodox economics opinion Arrow-Debreu Black-Scholes David Li Guassian copula formula collateralised debt obligations CDO mortgage-backed securities MBS austerity expansionary austerity crisis construction Schumpeterian Vision general equilibrium economics Walrasian economics efficient markets hypothesis EMH dynamic stochastic general equilibrium crisis economic theory economics equilibrium financial markets general equilibrium growth

Authors and affiliations

  • Matthew¬†Watson
    • 1
  1. 1.University of WarwickUK

Bibliographic information