Krugman vs. Cooley: Why Economists Got It Wrong

Paul Krugman wrote a piece for the New York Times magazine this weekend on why economists did not foresee the meltdown of 2007-2009. Krugman criticizes the many economists who have a strong faith in markets, arguing that their faith in the efficiency of markets led them to miss the potential for the current crisis. Thomas Cooley makes a strong counterargument on Forbes' website today. Krugman's article is quite lengthy, while Cooley's is clear and concise. They are both worth reading though.