Ben Bernanke (an ex-academic from Princeton) took on the financial press and Paul Krugman (an ex-academic from Princeton) who have been arguing that the financial crisis and great recession have exposed major failures in the academic fields of economics and finance. I (an academic ex-Princeton) have argued that the crisis actually showed how bad the state of financial journalism. The business press is supposed to ferret out hidden off-balance sheet exposures, keep track of whether regulators are doing their jobs, and report on shady mortgage practices. But this is hard work – it’s called investigative journalism for a reason – and it’s easier to call up people and report what they say rather than checking it or even (gasp) running some numbers. In any case, Bernanke lays out nicely where and how economics broadly-defined missed the crisis and yet had the knowledge to understand the crisis and mitigate it. Link here.