Woe to economists

Economists must be having a rough time these days... if they are honest with themselves.

The Phillips curve turns out to be a farce.  It was the curve showing inflation and unemployment rates moving in parallel.  Not now... no way.

Keynes macro models failed badly both in Japan in the 1990’s and the U.S. where the Keynes stimulus equation predicted a reduced unemployment to 8% but after vast stimulus it came in above 10%.

Going off the gold standard was suppose to help keep economies more independent.  All markets on the planet have been in minute to minute sync for the last 15 years.

Deflation is  supposed to be a negative ruling force.  But GDPs have been growing despite the absence of a model showing the connection.  

Japan has an extreme debt to GDP ratio but the yen is the strongest currency in the world.

My favorite: after P. Krugman ( he became a political hack) claimed the geo-political nature of economic engines and got a Nobel prize, many non-geographic industries have emerged: computers, the Internet, apps, TV news, cable and satellite systems.

Woe to be an economist.