Monday, January 18, 2010

The Chicago School and the Crisis (amv)

In the aftermath of the Great Recession many opponents of the Chicago School of economics inside and outside academia take the chance to blame the infection of financial markets and policy with Chicago's freshwater approach. Even The Economist, usually in favor of free markets, and its blog Free Exchange (here, and here) attack Chicago's Efficient Market Hypothesis. You can click here and here for our perspective. I provide some links to The New Yorker, where John Cassidy - a Chicago-sceptic - has posted very insightful interviews with some Chicago Boys like Gary Becker, John Cochrane, Eugene Fama, Kevin Murphy, etc. One thing becomes obvious: at least the Chicago Boys know what their theories actually indicate.