Economic Errors?

File under ‘plus ca change … ‘:

“Economic theory went astray when theoreticians focused their attention on the allocative functions of markets to the exclusion of their creative functions, which are far more important since they serve as an instrument for transmitting changes”

“it is true that, at the moment, the status of economics appears to be chaotic and, at the same time, many theoretical papers are becoming more abstract and irrelevant than ever”

Both quotes are by Nicholas Kaldor and are taken from Diego Pizano’s conversation with him.

The interview was in 1977.

No. Nothing changes. Economics manages to stay the same. Especially, it seems, when it’s wrong.

There may be a lot of self-criticism. It just doesn’t lead to self-adjustmnent.