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?