Why Zombie Ideas Persist in Economics

Why Zombie Ideas Persist in Economics 1

Jon Krause for The Chronicle Review

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Jon Krause for The Chronicle Review

The financial and economic crisis that pushed the world economy to the brink of collapse in September 2008, and created sustained mass unemployment in the United States and Europe, came as an almost complete surprise to the majority of economists. None were more surprised than specialists in finance and macroeconomics, for whom the crisis contradicted central tenets of the dominant research program.

For several decades, the core of finance theory has been the "efficient markets