Abstract
As just argued, New Classical Economics (the twenty-first-century CE) did not pass the reality test represented by the global economic crisis. CE, which does not contemplate the possibility of bubbles and/or recessions, was intrinsically incapable of predicting the crisis, nor was it able to make sense of it on an ex post basis, and to acknowledge that the “irrational” behavior of borrowers, investors, and institutions was hardly consistent with the concept of homo economicus. But why was CE so successful, in spite of its lack of explanatory power?
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Ghisellini, F., Chang, B.Y. (2018). The Behavioral Alternative. In: Behavioral Economics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-75205-1_3
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