Samuelson, Robert (2005) Time to toss the textbook NEWSWEEEK, 6/27 39

Economics textbooks are based on perfect competition (micro) and intra-nation trading (macro) although there are terms for international trading, most economic theory is based on what happens within a country’s trade system.

Economics has not truly adapted to globalization. There are some terms used such as balance of payments, but for the most part it is hard to determine multinational trade. We truly don’t know why rates on mortgages and long term bonds keep falling. It may be that investors are buying in many countries and feel diversified. We thought that we could understand consumer spending, we can not. We don’t know how the USA affects other countries and how they impact on us in a very clear way. We can not determine full employment with outsourcing as a main ingredient.

Economics success may be based on fed chairmen, market self regulation or just pure dumb luck.