Praying for a revolution in economics | Alex Andrews | Comment is free | guardian.co.uk

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Last year the former head of the Federal Reserve, Alan Greenspan, made a quite astonishing admission . Asked if his beliefs that free markets were an "unrivalled way to organise economies" had clouded his judgement and ability to prevent the financial crisis that tipped the global economy into recession, Greenspan responded that it might have, but it was now obvious that there was a "flaw in the model that I perceived is the critical functioning structure that defines how the world works". Finding this flaw had made him "distressed".

Greenspan's confession was seen by many for precisely what it was: a crisis of faith, the faith that unrestricted free markets would always act benevolently. It revealed what a few had been arguing for some time, that the character of neoliberal economics is essentially religious . This is counter-intuitive. Surely the policy of Greenspan and others is based on an understanding of the science of economics, particularly in the mainstream neoclassical form that is most often taught in universities around the world? It is certainly the case that neoclassical economics appears scientific. This is because it deploys huge quantities of complex mathematics, giving it the veneer of being what it has long ...

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http://www.guardian.co.uk/commentisfree/belief/2009/jul/11/economics-greenspan-neoclassical

http://www.guardian.co.uk/commentisfree/belief/2009/jul/11/economics-greenspan-neoclassical