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Economics Nobel a Lagging Indicator

Harvard Business Review

In this case, the award has been given for work that shores up a fiction of economics—rational expectations theory—that is complicit in the financial crisis and has been renounced even by Alan Greenspan. As the WSJ notes, "a celebrated 1981 paper by Mr. Shiller struck an early blow against efficient markets hypothesis.

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The (Many) Things Macroeconomists Don't Know

Harvard Business Review

Another quote: " Rational expectations theory has brought macroeconomics a long way. And neither of these approaches leaves room for the possibility that financial market fluctuations could be the source of problems for the real economy. but there is a clear case to reexamine the assumptions." Now, none of this is exactly news.

Crisis 11