Economics for Real

Preface

Economics is a curious and controversial science. More than any other field, it currently provokes questions about whether its theories have anything to do with the reality they are supposed to cover. Economics is under pressure from the general public due to its alleged failures in terms of forecasting real-world economic problems. It is also under pressure from the other sciences, which fail to see how the assumptions made in economic models can be squared with what is known about human behavior, cognition and social institutions. The situation is not helped by the nonchalant manner in which practicing economists often dismiss such charges. This criticism is undoubtedly a good thing, because no science can flourish in a state of stagnant ...