From Edward Fullbrook
Steve Keen has a new book out: Can we avoid another financial crisis? Keen, as you probably know, was one of those economists – Nouriel Roubini, Dean Baker, Ann Pettifor, Michael Hudson, Wynne Godley and others – who warned well in advance that the Global Financial Crash was coming if preventive measures were not taken. How did these economists clearly see the crash coming when neoclassical economists did not, not even the day before it happened? Keen’s new book reminds me that a few years ago in an interview I offered an explanation when answering the following question.
The first distinction you draw is that the old paradigm (OPE) is anti-pluralist (as in classical physics), while the new paradigm (NPE) is pluralist (as in modern physics). Can you give me a concrete example or two that illustrates what this means?
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Of the ten points that I listed to distinguish between OPE and NPE, the most important is the first: monism versus pluralism. Why? Because it is this choice that sets down the general framework under which the pursuit of knowledge is conducted. And this choice, in terms of its effect on the advancement of knowledge and thereby human welfare, is, as I will illustrate, absolutely enormous.
There is a famous quote from Albert Einstein that points to the reason why for the advancement of science this choice is so critical.