ABSTRACT
In the wake of the recent economic crises, it has become fashionable to engage in economics-bashing and criticize economic theory, as a whole, as a discipline hopelessly anchored in unrealistic models populated by all-knowing, hyperrational agents. These critiques (see e.g. Bouchaud, 2008), however, are both unfair and ill-informed. To understand the misunderstanding, it might be useful to get some perspective.
