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Dirk Bezemer On How Wynne Godley And Some Other Economists Saw The Crisis Coming

Dirk Bezemer had investigated who saw the crisis coming and why. Now he has written a short piece for the Financial Times‘s readers.

It’s not an easy task. Many may have said that “there is going to be a crisis”. Some may even say the same thing their whole life. Even a broken clock is right twice a day!

So one has to choose some criteria to separate good analysis from fluke.

Also, What Bezemer observes is that the common theme of economists who saw it coming is the use of flow of funds accounting.

One small quibble in the latest article: Bezemer claims that lending to the financial sector “crowds out” production. I am not sure that’s the case. But it’s not important here.

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