Paul Krugman: how the economists got it wrong

Paul Krugman, writing for the New York Times Magazine, gives a guided tour of the history of economic thought and his take on why economists failed to see our current mess coming. Not surprisingly, he also has some thoughts on where economics should go, summed up by a quote from H. L. Mencken: “There is always an easy solution to every human problem — neat, plausible and wrong.” In other words, economists need to incorporate into their theories the fact that humans are sometimes irrational and markets can behave unpredictably.

Here is "How Did Economists Get It So Wrong?"