Why couldn't the theories predict the current crisis?

Is something seriously wrong with economics? After being cold-shouldered by the model-building, regression-fitting economist fraternity for long, Keynesian and other less orthodox economists are getting a bit of their own back. In an interview to The New York Times, economist James Galbraith, who has steadfastly stayed loyal to the liberal theories of his celebrated father John Kenneth Galbraith, said that the failure to foresee the mortgage crisis was “an enormous blot on the reputation of the profession”. He went on to say: “There are thousands of economists. Most of them teach. And most of them teach a theoretical framework that has been shown to be fundamentally useless.”

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