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This link has been bookmarked by 2 people . It was first bookmarked on 09 Jun 2009, by tony curzon price.

  • 10 Jun 09
    bankwatch
    Colin Henderson

    That economics is not a natural science is clear from the inconclusive engagements that have punctuated its own history. A hundred years ago the classical theory reigned supreme. This “proved” that free markets were automatically self-adjusting to full employment. They were either continually at full employment or, if disturbed by an outside shock, rapidly returned to it. The only thing capable of wrecking the workings of the market’s invisible hand was the visible hand of government interference.

    Then along came the Great Depression of 1929-32 and John Maynard Keynes. Keynes “proved” that markets had no automatic tendency to full employment. This failing of the invisible hand justified government policies to maintain full employment.

    For 30 years or so Keynesianism ruled the roost of economics

    ft.com economics keynes Niall Ferguson paul krugman

  • 09 Jun 09
    tonycurzonprice
    tony curzon price

    crash

    • Economists clash on shifting sands

      By Robert Skidelsky