“Nowhere have REH’s epistemological flaws and empirical disappointments been more apparent than in efforts to model financial market outcomes, which are largely driven by participants’ expectations. Beginning with Robert Shiller’s (1981) pathbreaking paper, research has shown that REH models are unable to explain the basic features of fluctuations and risk in stock markets. Likewise, in their magisterial work on the current state of international macroeconomics, Maurice Obstfeld and Kenneth Rogoff (1996: 625) concluded that “the undeniable difficulties that international economists encounter in empirically explaining nominal exchangerate movements are an embarrassment, but one shared with virtually any other field that attempts to explain asset price data.” The failures of REH explanations of aggregate outcomes gave rise to alternative approaches, most notably behavioral finance models. However, sober assessments even by the likes of Obstfeld and Rogoff did not dispel the faith of most economists that REH models would one day be able to explain financial market outcomes and macroeconomic performance.”

"Which Way Forward for Macroeconomics and Policy Analysis?" 2013

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American economist 1948

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“There are models of development that already exist in developing countries that actually are much more sustainable than the model of free markets that we have been trying to export.”

Raj Patel (1972) British academic

How free is the market http://fora.tv/2010/01/06/Raj_Patel_The_Value_of_Nothing#Raj_Patel_How_Free_Is_the_Free_Market FORA.tv
Context: We are all familiar with the idea: Give a man a fish and you'll feed him for a day, but teach a man to fish and you'll feed him for a lifetime. That sounds reasonable enough. … But think of the model that rests on. It constructs people in developing countries that sort of people sitting by the rivers and eating fish and then they look at the river and said: "- So what's that? - It looks like a fish. - Well, how do we get it out? - Well I have no idea, we would have to wait for white man to come and tell us." It's important to remember that actually there are systems of governance that already exist. There are models of development that already exist in developing countries that actually are much more sustainable than the model of free markets that we have been trying to export.

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