The article by Paul Krugman explores the failures of economists in predicting and understanding the 2008 financial crisis. Krugman argues that economists mistook the beauty of their mathematical models for truth, leading them to ignore the flaws and frictions in market economies. He highlights the divide between "freshwater" and "saltwater" economists, with the former advocating for neoclassical economics and the latter embracing Keynesian economics. The crisis exposed the limitations of both approaches, with freshwater economists' belief in efficient markets and saltwater economists' reliance on monetary policy failing to prevent the downturn. Krugman suggests that the profession needs to embrace a more realistic view of financial markets and incorporate Keynesian principles into macroeconomics to better understand and address economic crises.The article by Paul Krugman explores the failures of economists in predicting and understanding the 2008 financial crisis. Krugman argues that economists mistook the beauty of their mathematical models for truth, leading them to ignore the flaws and frictions in market economies. He highlights the divide between "freshwater" and "saltwater" economists, with the former advocating for neoclassical economics and the latter embracing Keynesian economics. The crisis exposed the limitations of both approaches, with freshwater economists' belief in efficient markets and saltwater economists' reliance on monetary policy failing to prevent the downturn. Krugman suggests that the profession needs to embrace a more realistic view of financial markets and incorporate Keynesian principles into macroeconomics to better understand and address economic crises.