All economists remember the years of so called “Great Moderation”. It was time when any mainstream theory (Keynesian or neoclassic) was right because they all predicted no change. The essence of conventional economics consists in the feedback loop when actual economic behavior can be partially controlled by economic/financial authorities like central banks, broader government and so on. The Great Moderation was the triumph of orthodox (and also heterodox) economic theory. All articles in major economic journals paid tribute to smart monetary/economic policies in developed countries and seriously declared cloudless future. Where are these happy years now?
What one sees now is a severe internal divergence in the economics domain. Previously peacefully co-existing “schools of economic thought” really fight without captives. Their opinions have polarized on all issues, from the reasons of the crisis to the influence of inequality on real economic growth.
Every action of monetary/economic authorities is criticised from all sides and the authorities cynically ignore academic economists.
Unfortunately, nobody explains anything helpful in terms of strict science or even common sense. Nonetheless, the discussion is getting hotter. It seems to be a balloon expanding under the pressure of vacuum – such an anti-scientific allegory.