Sunday, September 06, 2009

A spectre is haunting USA — the spectre of Keynesianism...

Nobel Laurete Economist Paul Krugman published a great article in New York Times magazine titled "How did economists get it so wrong?", which is in essence "the brief history of American Economics." In the wake of the financial crisis, economics profession will definitely do some soul searching, and this article explains which souls are to be found in the near time future.

Those intrigued by this article should definetely have a look at this somewhat long, but very exciting New Yorker article on the same issue. It draws parallels between postmodernism in human sciences and the current crisis.

Finally, for those of a somewhat more geekish taste, this Scientific American article is also great. It describes the mathematical models that gave the buyers and issuers of the toxic derivatives a false sense of being in control.

In the end, I believe what we should take out of this mess is, that we need a healthy dose of skepticism in every aspect of our lives.

Finally, for those who caught the reference in the title of this post, I recommend Christopher Hitchens' article "The Revenge of Karl Marx." I would love to hear what Paul Krugman had to say about this.

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