Queen receives lesson in economics – Yahoo! News UK

Via Queen receives lesson in economics – Yahoo! News UK:

The Queen has been sent a letter by a group of eminent economists explaining how “financial wizards” failed to “foresee the timing, extent and severity” of the economic crisis.

The three-page letter, signed by London School of Economics professor Tim Besley, an external member of the Bank of England’s monetary policy committee, and political historian Peter Hennessy, was sent after the Queen asked on a visit to the LSE why nobody had predicted the credit crunch, according to the Observer newspaper.

The letter ends: “In summary, your Majesty, the failure to foresee the timing, extent and severity of the crisis and to head it off, while it had many causes, was principally a failure of the collective imagination of many bright people, both in this country and internationally, to understand the risks to the system as a whole.”