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Those who rationalized the way things were going gained credibility until the day things fell apart. Then I asked Larry to explain the situation in more detail. Everyone has a theory about the financial crisis. And I warned that there were 'resulting significant but possibly unrecognized financial losses existing within Citigroup. Sir Mervyn King has said - in a rare admission - that the Bank of England failed to do enough to warn about the risks building up in the banking sector ahead of the financial crisis. Farmer is vice chair for graduate studies in the department of economics at the University of California Los Angeles and the author of two forthcoming books on economics:

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The Financial Times is proud to defend it — even today.

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But at least they should be able to explain the basic functioning of the economy. Lars Pålsson Sylls kamp mot allt vad rationella förväntningar och effektiva marknader heter var länge tröstlös. I en översikt vaskar Howard Davies vid London School of Economics fram 38 olika förklaringar till krisen. Efter decennier av skleros och Delorium har EU mycket att lära av den ekonomiska förnyelsen i USA, som tog sin början under Reagan-åren. Prof Rajan now argues that economists had all of the models required to understand the credit crisis, but that the subject suffers from being segregated into increasingly narrow fields.

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