How did economists get it so wrong?

Immediately after the financial crisis in 2008, many economists had to rethink their attitudes toward the market. Everyone knows that we have gone into panic because the stock market and the real estate market collapsed. The US economy has bottomed out. Many people think that this is the second most serious depression after the Great Depression. But what is the reason? Who is in charge of the crisis. What can we learn from this confusion? In a recent New York Times Sunday magazine article, Nobel laureate Paul Krugman explained the reasons and insights for solving economic problems.

A famous mainstream economist insisted that no one had seen it. For example, Paul Krugman wrote an article "How is an economist doing something wrong?" The Queen of England is famous for asking why the London School of Economics did not predict this devastating situation. At the same time, Neoclassical economists are struggling to find ways to make their courses more relevant. (Blinder, Alan. "The financial crisis after the macroeconomic principle of education" Economics journal 41, No. 4 (2010), page 385.) This picture was one of the subjects that failed in the work # 1.

The third challenge is a fundamental problem in economics. A well-known economist, Paul Krugman, in a column worthy of praise last year asked "Why are economists so wrong?" "Analysis of elegance and attractiveness of mathematical acrobat will leave the economy in reality while locking the economy in the ivory tower of frictionless market and rational economy" (Liikanen, 2010, p. 3-5)

Why are economists often wrong? John Lanchester (New York Times) is paying attention to the confidence crisis of current economists, as evidenced by recent World Bank paper (Paul Romer) and Chief Economist (Andy Haldane) of the Bank of England . The problem is focused on macroeconomics and areas to study the whole economy. As Ranchester said, the macroeconomist hopes to think of us as a tinkering backside with a reliable system. But in reality it is like a bomb disposal team to be summoned in an emergency to prevent disasters like the Great Depression.