"...the academic literature was chock-full of models of financial bubbles, asymmetric information, incentive distortions, self-fulfilling crises, and systemic risk. But, in the years leading up to the crisis, many economists downplayed these models’ lessons in favor of models of efficient and self-correcting markets, which, in policy terms, resulted in inadequate governmental oversight over financial markets."
"....the knowledge that the professor willingly imparts with great pride to his advanced students is deemed to be inappropriate (or dangerous) for the general public...
Economics instruction at the undergraduate level suffers from the same problem.
In our zeal to display the profession’s crown jewels in untarnished form
– market efficiency,
the invisible hand,
comparative advantage –
we skip over the real-world complications and nuances, well recognized as they are in the discipline. It is as if introductory physics courses assumed a world without gravity, because everything becomes so much simpler that way "
