Steve Keen responds to a recent blog from Paul Krugman. He paraphrases Paul Krugman’s post as:
No need for change, boys and girls: mainstream economics has everything under control. We missed the crisis just because we failed to observe the shenanigans in the shadow banking system. Once we realised our observational errors, we had all the necessary tools and knew what to do (oh, and what the rebels said would happen didn’t anyway, so there!). The status quo is fine: move along folks, nothing to see here…
For a more complete look at the arguments (and the full blog from Paul Krugman) go to the full Australian Business Spectator article Why Krugman needs a new school of thought