“Economic Theory ten years after the crisis”

That’s the title of the paper: Economic Theory ten years after the crisis, written by Droucopoulos Vassilis, Emeritus Professor of Industrial Economics in the Department of Economics at the University of Athens. There must be other such articles around, but this is one of the few I have come across. The abstract:

It is my intention to address, primarily within the scope of mainstream macroeconomic theory, three of the questions making up the main theme of the conference, namely: “How a very problematic theory continues to survive and dominate both the policy and the academic scene. What are the processes in the economy and the society that sustain its dominance? What is the condition of the economic Orthodoxy (particularly under its current form of the New Macroeconomic Consensus, that is the hybrid of mild neoliberalism with conservative New Keynesianism)?”. A good many orthodox economists hold the view that there is no necessity for a paradigm shift. On the contrary, a mere “evolution towards a more pluralistic discipline” would suffice. Hence the title of my talk.

They still don’t get it since variants of Keynesian economics remain as embedded as ever. But what a laugh to see New Keynesian economics described as “conservative”. It must be the modern fashion, and they wonder why nothing works.

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