Neoclassical theory dominates university economics departments the world over. Yet despite the many schools of thought and ideological viewpoints espoused by neoclassical economists – from free market fundamentalists to those who believe the state should play an active role in the economy – none were able to predict the current crisis.
The French student organization Pour un Enseignement Pluraliste dans le Supérieur en Économie (PEPS-Économie), frames the crisis as “not only of the economy, but a crisis of economics itself – and a crisis in its teaching.”
“Not long before the crisis, in the neoclassical macroeconomic model you didn't even have the possibility of a crisis,” says PEPS-Économie’s Louison Cahen-Fourot. “There was no way you could understand what was going on at the time with the model of neoclassical economics. If you go to Marxist economics, or institutional economics, or post-Keynesian economics, some people were warning for quite some time that something was going wrong.
But as these approaches are not taught – or barely taught – students didn't know about that.”Truthout
Rethinking Economics: From the UK, a Global Student Movement Takes Shape
Ruby Russell, Occupy.com
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