Orthodox macroeconomics masked crisis buildup and blocked repairs afterward

Evidence

The reason this may be significant for a larger audience outside of the cognoscenti of the economics profession is that, after the crash, very few economists have been willing to seriously entertain and evaluate the prospect that the dominant macroeconomic theory helped cause the crisis, by masking the buildup of instabilities before the crisis, and frustrating repair activity afterward. This underappreciated phenomenon has been then further confounded when journalists have been prompted to repeat a fair number of fallacies about the current state of economics, under the tutelage of a select coterie of informants. — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 662

Categorization

• XREF: Directly advances the book’s thesis on the Nine Lives of Neoliberalism and ties to criticisms of orthodox economics’ complicity in the crisis. — connects to: Orthodox economics models structurally excluded the possibility of major crises — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 491; Belief in the Great Moderation blinded the Fed to signs of crisis — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 504; Economics escaped crisis blame because the banking sector it protected escaped unscathed — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 555 (+12 more)

Broader Connections

• Social studies of finance recapitulated orthodox economics and obscured the crisis’s political economy #corroborates (0.82) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 956
• Ideology shapes economic crisis rather than merely reflecting it #expands (0.78)
• Three splashy economics revisions diverted attention from structural crisis causes #corroborates (0.75) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 725
• Finance escaping crisis consequences legitimated the economics profession dodging blame #corroborates (0.75) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 583
• Leading orthodox economists could not agree on the crisis’s actual causes #complicates (0.72) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 809
• The sovereign debt crisis is a transmuted and camouflaged banking crisis #exemplifies (0.72) — Mark Blyth, Austerity, 35
• A prolonged crisis signals irremediable structural contradictions being patched over #expands (0.70)