In the aftermath of the financial crash, we began to realise that the models were too simple and the degree of certainty offered to agents was too high. As a result, decision-making stopped dealing with the possibility of mistakes. A richer structure was required in models and there is a need to abandon spurious attempts to over-engineer economic stability.

The transcript and downloadable versions of the lecture are available from the Gresham College website: http://www.gresham.ac.uk/lectures-and-events/where-the-great-experiment-went-wrong

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