The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The response of the dismal scientists to their collective failure to anticipate the global financial crisis has been dispiriting. Economists have refused to set aside their abstruse models, even though these models failed to predict the economic catastrophe. During the boom years, almost all economists applauded Alan Greenspan’s easy money policy. After the bust, the same people continue to deny – in the face of common sense - that the low interest rates of Greenspan’s Federal Reserve were largely responsible for the debt bubble. In short, economics has failed to address its intellectual weaknesses.