Showing posts from February, 2013

DAVIES, Howard. "Economics in Denial" (2013, Project Sindicate)

"Many conference participants agreed that the study of economics should be set in a broader political context, with greater emphasis on the role of institutions. Students should also be taught some HUMILITY. The models to which they are still exposed have some explanatory value, but WITHIN constrained parameters. And painful experience tells us that economic agents MAY NOT behave as the models suppose they will." (DAVIES, Howard. Former director of LSE, 2013) [Emphasized text] Read more:  

SKIDELSKY, Robert "Models behaving badly".

"All of these models assume outcomes on the basis of existing policies. Their consistent over-optimism about these policies’ impact on economic growth validates pursuing them, and enables governments to claim that their remedies are “working,” when they clearly are not. This is a cruel deception. Before they can do any good, the forecasters must go back to the drawing board, and ask themselves whether the theories of the economy underpinning their models are the right ones." Read more at  

RODRIK, Dani. " The Tyranny of Political Economy"

"Political economy undoubtedly remains important. Without a clear understanding of who gains and who loses from the status quo, it is difficult to make sense of our existing policies. But an excessive focus on vested interests can easily divert us from the critical contribution that policy analysis and political entrepreneurship can make. The possibilities of economic change are limited not just by the realities of political power, but also by the poverty of our ideas." (Rodrick, 2013) Read more at