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Economic models are broken, and economists have wildly different ideas about how to fix them

Eshe Nelson
Economic models are broken, and economists have wildly different ideas about how to fix them

Ten years after the global financial crisis, economists are still puzzling over how they (mostly) failed to predict such a massive crash. Given all the data and experience at their disposal, how did they miss something so consequential? In a new paper (pdf) entitled “Where Modern Macroeconomics Went Wrong,” Nobel laureate Joseph Stiglitz of Columbia…