Why Economists Failed to Predict the Financial Crisis

10 years later, Nobel laureate George Akerlof says the walls within economics need to come down

From the collection: 2008: A Retrospective on the Financial Crisis

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From the collection 2008: A Retrospective on the Financial Crisis

Specialization is the hallmark of a good economist. Or is it?

George Akerlof, a winner of the Nobel Prize in Economics, doesn’t mince words: economists failed to predict the financial crisis because the discipline is too siloed. The rules of academic journal writing make it very difficult for an economist to write on an issue outside of their subfield, hindering the cross pollination of ideas that could have led to more economists predicting the crisis.

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