Many mainstream economists (e.g., Lucas, Cochrane) claim that the characteristics of a “science” require rigor, consistency, and mathematics. So if economics is to be a science it must display these characteristics. Paul Samuelson has added the claim that economists must accept the ergodic axiom in their models in their pursuit of economics as a science on par with physics, astronomy, and chemistry. Efficient market theory possesses all these characteristics. So how is it possible that efficient mark et theorists did not foresee the financial crisis that started in 2008?
by Paul Davidson Journal of Post Keynesian Economic , USA] Copyright: Paul Davidson, 2012 You may post comments on this paper at http://rwer.wordpress.com/2012/03/12/rwer real world economics review, issue no. 59