Not only is the global economy in shambles, but so too is the economic paradigm of the efficient market hypothesis which was dominant in the years before the crisis. Paul Krugman asked: “How did Economists Get it so Wrong? What happened to the economics profession and where does it go from here?” (NYT 2009). The same question can be asked about Political Science/Political Economy. Theoretically we have stripped the state of the capacity to act. In the final analysis, it was the state which bailed out the banking sector and saved the economy from a global meltdown. Since the collapse of the Fordist production regime, political science tried to copy the rational expectation model of human behavior that gained dominance in economics. In many respects the mainstream in political science/political economy has become equally doctrinaire in believing in the self-regulating market myth and market efficiency... See separate PDF for full abstract.
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