Krugman on the profession. The reasons economists have failed

Paul Krugman wrote a relatively short article on the economic profession and crisis. The reader can find it here. There is no big difference with many other economists’ claims on the reason behind the overall failure to describe the current crisis. The profession has problems in “social dynamics” and thus should listen Paul and follow his ideas up. The profession needs consolidation around some “right” ideas and “wrong” idea must be avoided.

There is only one good sentence in this paper

“All of this would have been OK if the triumph of anti-Keynesianism was justified by superior empirical success. “

This requirement of the empirical justification must be applied to the profession as a whole. Economics as a profession needs a measurable accountability. Otherwise, there is no rule how to justify and select between various models and predictions. Unfortunately, the economic profession defends its quantitative unaccountability fiercely. As a consequence, economists will fail again, and again, and again … One can bet the failure without any risk.