Economics: Economic history should be at the heart of economics instruction - 0 views
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ONE of the stranger myths about the recent financial crisis is that no one saw it coming. In fact quite a lot of economists saw it coming, and for years had been writing with dread about the growing global imbalances and the necessary financial adjustments.
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It didn't require a very sophisticated understanding of economics, just some knowledge of history. Every previous globalisation cycle except one (the one cut short in 1914) ended that way, and nothing in the current cycle seemed fundamentally different from what had happened before.
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while many economists, bankers and policymakers were caught flatfooted by the crisis, most economists with real knowledge of economic and financial history—and by history I do not mean the last twenty years or thirty years—thought a crisis almost inevitable and broadly understood how it was going to occur.
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