The popular economics magazine “The Economist” recently wrote a somewhat introspective issue that questioned the validity of current economic theory. It seems that the London School of Economics is doing the same.
Peter Boettke succinctly states what he, and maybe most of us, hope for:
I am not sure what the upshot will be of all of this soul-searching among economists over how they understand the object of their studies and how they communicate knowledge to their students (undergraduate and graduate). To me we need to reconnect again with the core ideas of exchange and the institutions within which individuals engage in exchange. In a very simple way it is about understanding the positive sum games of free exchange on the market, and the zero and negative sum games of political interference with the market. Ultimately, it boils down to understanding the rules of the game that promote peaceful social cooperation under the division of labor so that societies realize generalized prosperity and avoid conflict, poverty and squalor.