Floating University

FU Asks: Why Did Economists Drop the Ball on the Housing Bubble?

over 3 years ago

Welcome to an ongoing feature on the Floating University blog, FU Asks, where we open up the academic debate on our e-learning platform to the Big Think community. 

This week we're featuring a discussion prompt from Saul Levmore, William B. Graham Distinguished Professor of Law, University of Chicago:

Many economists claimed in the aftermath of the housing bubble collapse in 2008 that they did not foresee the economic downturn for a variety of reasons, perhaps because economists only make accurate predictions about the long-term economy inasmuch as meteorologists make accurate predictions about the long-term weather. Do you agree with this defense, or do you think the majority of economists failed catastrophically? How should they have predicted the housing bubble, and what actions could/should they have taken to prevent it from occurring? 

Here's Levmore offering a qualified defense of professional economists, from his Floating University lecture on economics:

Answer the above prompt and have your response featured on the Floating University e-learning platform!

Visit The Floating University to learn more about our approach to disrupting higher education, or check out Saul Levmore's eSeminar "Do Not Pass Go, Do Not Collect $200: Monopolies as an Introduction to Economics."


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