Shortly after the 2008 financial crisis, many economists had to rethink their approach to the market. Everyone knew we panicked because the stock and housing markets collapsed. The American economy was hitting rock bottom. Many people considered it the second worst recession after the Great Depression. But what was the cause? Who is responsible for the crisis? What can we learn from this turmoil? In a recent article in the New York Times Sunday magazine, Nobel Prize winner Paul Krugman offered his explanation of the causes and his ideas for repairing the economy. In the article, Krugman addresses several issues underlying the recent state of the economy. He traces the cause of our recession to academia. The problem is rather subtle. He claims that poor market thinking was the main reason that led to the recession of 2008 and 2009. The crisis evoked the two schools of macroeconomics thought to have been long dormant: the economist of "l 'fresh water' and that of 'salt water'. Both have their own ideology to resolve the crisis. As Krugman puts it, “freshwater economists are, essentially, neoclassical purists.” They assume that people are rational and that markets work. They recognize the use of Keynesian theory, but simply do not trust government interference. This is why they generally prefer monetary policy to fiscal policy. On the other hand, Krugman asserts that “salt water economists are pragmatists.” Their approach consists of applying all methods likely to ensure the proper functioning of the economy, whether fiscal or monetary policy. They generally favor Keynesian theory. Freshwater economists base their practices on the perfect market. They are convinced that the market system will never be able to accept the inconvenient truth that markets sometimes do not work properly. Second, economists should readopt Keynesian practice because it offers a legitimate response to economic downturns. Finally, they should consider the realities of finance in the world of macroeconomics (Krugman 2009). As a future economist at George Mason, essentially a “freshwater” school, I find the first suggestion a bit difficult to accept. I think the best option right now is to remain neutral and open-minded because I still have a lot to learn about economics. Works Cited Krugman, Paul. “How did the economists get it so wrong?” How did the economists get this wrong? The New York Times, September 2, 2009. Web. May 9, 2011. .Mankiw, N. Gregory. Macroeconomics. 7th ed. New York, NY: Worth, 2009. Print.