Joseph Stiglitz: “The advocates of free markets in all their versions say that crises are rare events, though they have been happening with increasing frequency as we change the rules to reflect beliefs in perfect markets. I would argue that economists, like doctors, have much to learn from pathology. We see more clearly in these unusual events how the economy really functions. In the aftermath of the Great Depression, a peculiar doctrine came to be accepted, the so-called “neoclassical synthesis.” It argued that once markets were restored to full employment, neoclassical principles would apply. The economy would be efficient. We should be clear: this was not a theorem but a religious belief.”

Joseph E. Stiglitz at “Meeting the Challenges of Financial Crisis”, the 18th Annual Hyman P. Minsky Conference on the State of the U.S. and World Economies, The Levy Economics Institute of Bard College, April 16–17, 2009, New York City. (p. 76)

***
Join Economic Sociology and Political Economy community via
Facebook / Twitter / LinkedIn / Instagram / Tumblr / Reddit / Telegram