Abstract Mathematical models Within the economics profession, many have criticised the prominence of complex mathematical models built on micro-economic foundations. It is suggested the economics profession rewards mathematical brilliance above a greater practical investigation of empricial data
- The anti macroeconomic roar at Freakonomics
The current crisis has shown the extent to which turmoil in financial markets can affect the wider economy.
Ideologues. Like all professions economists often get stuck in defending certain ideologies, seeking to find data to support their own ideology rather than having a greater flexibility to understand when the model gains greater limitations.
- e.g. see: A dark age of Macro economics by Paul Krugman
The failure of Economists by by David Colander, Hans Föllmer, Armin Haas, Michael Goldberg, Katarina Juselius, Alan Kirman, and Thomas Lux:
"We believe that economics has been trapped in a sub-optimal equilibrium in which much of its research efforts are not directed towards the most prevalent needs of society. Paradoxically self-reinforcing feedback effects within the profession may have led to the dominance of a paradigm that has no solid methodological basis and whose empirical performance is, to say the least, modest... We believe that the failure to even envisage the current problems of the worldwide financial system and the inability of standard macro and finance models to provide any insight into ongoing events make a strong case for a major reorientation in these areas and a reconsideration of their basic premises...."It should be remembered economists don't run the economy. They don't even necessarily make the decisions which influence the economy. The failure of economists is partly due to the difficulty of keeping upto date with a very fast changing financial system. But, there is still huge room for improvement