At CBS MoneyWatch:
When Markets Aren't Perfect, Government Can Help, by Mark Thoma: In response to a question about economic theory and its role in the financial crisis, Nobel Prize-winning economist Joseph Stiglitz said:
"The strange thing about the economics profession over the last 35 year is that there has been two strands: One very strongly focusing on the limitations of the market, and then another saying how wonderful markets were. Unfortunately too much attention was being paid to that second strand."
Even worse, those who have pointed out the markets' limitations have often been attacked as anti-market, against capitalism or favoring large government. That' a mischaracterization of this point of view. ...