Tweet

One Economist to Rule Them All? Really? Do We Have To?

Guest post by: Paul Kedrosky

Article Overview: Last night on TV Ontario I participated in a roundtable discussion about economists’ culpability in the current financial mess, as well as about its potential for doing anything useful as we try to get out. On the one side, you had Ken Rogoff, arguing somewhat in favor of economics’ continuing credibility. On the other side you had Dan Ariely, arguing against orthodox economics, but in favor of its behavioral variant.

One Economist to Rule Them All? Really? Do We Have To?

Last night on TV Ontario I participated in a roundtable discussion about economists' culpability in the current financial mess, as well as about its potential for doing anything useful as we try to get out. On the one side, you had Ken Rogoff, arguing somewhat in favor of economics' continuing credibility. On the other side you had Dan Ariely, arguing against orthodox economics, but in favor of its behavioral variant. I took a more middling view, which was admittedly unusual for me. I like some of the history in orthodox economics, some of the "aren't people nuts?" stuff in behavioral economics, and a dollop of the general skepticism brought by fellow discussant Diane Francis. But my general view is anti-expert, with it puzzling to me why we would throw out one group of economic svengali for another group, no matter how much funnier and more charming their stories are.

After all, if we concede that traditional economists are historians with a math fetish, then behavioral economists are mathematicians with a psychology fetish. Either way, I don't feel any more comfortable handing them the keys to the financial kingdom.

Related Articles
  But Where Were the Hippos!?
  The Importance Of The 80/20 Rule In Becoming A Top-Performing Sales Manager
  Economist on thought leadership - hypocritical or valid point?
  Applying the 80/20 rule
  Will The 48 Hour Opt Out Rule Remain In The UK
  A US Export Growth Area - Talent Development
  Don't Support Outdated Rules
  Do You REALLY apply the 80/20 Principle: Why ignore one of the most important success factors?
  The One Business Rule You Don't Want To Break
  Legal Marketing: Create a Label for you firm
  Guerrilla Effectiveness
  Top 7 Rules to Master Success
  The 8020 Rule Fallacy In Sales
  The Manager's Art and Skill of Managing Exceptions
  Pareto Productivity
  Experts Predict Change Is Coming for the Real Estate Market
  Could You Be The World's Best Visual Storyteller?
  Rule 20 Rules are Made to be Broken
  High Price Raises Perception of Quality
  HOW TO DEAL WITH A LOW QUOTE AND WIN THE BUSINESS

Article Tags: behavioral economics, credibility, diane francis, dollop, economist, economists, fetish, financial mess, historians, ken rogoff, math, nuts, orthodox economics, psychology, skepticism, svengali, tv ontario



Related Forum Posts
Business & Finance News - The Economist is my personal favorite.
Franchising & Licensing Can Be The Same Thing - FTC Rule 436 defines franchising as anyone offering an Agreement that contains these 3 things: 1. Licensing a "Mark" - which can be a trade name, service mark, commercial symbol, slogan, etc. 2. In the body of the Agreement, there contains, significant controls and assistance. 3. The licensee is paying the licensor in excess of $500 within the first six months of the actual offering of the business. Licensing and Franchising can mean the same thing today. If you do not decide to franchise and comply with FTC Rule 436, you may be in violation of Business Opportunity Laws that exist in 24 individual States.
Re: Is being too connected pushing your business forward or back - My email rule: Don't answer email until evening. My Social networking Rule: Don't go to Social site until I have finished other assignment. Mr forum rule: Post or start a new thread early in the morning and don't spend more than 30 minutes, then comeback in the evening to post more.
Re: Herbert Elwood Gilliland III: I Invented YouTube - [quote:3vele9ih] 1. Herbert's public declarations may get a response from YouTube or Google, but it's very unlikely they will get the response he wants or will like. I do not think this tactic is in his best interests. [/quote:3vele9ih] My friends and colleagues want me to raise awareness of this. As for a response: I expect none from them other than the court documents that have already been filed. Also, Ringo posted this here, not me. And besides: as of today, 2010, 5 years after the incident which I brought before the courts, the media won't touch my story, nor even report on my case because they are partnered with Google. [quote:3vele9ih] - If a person has a legitimate claim and can produce credible evidence to support the claim, then the issue should be given to a qualified legal representative to work through and to provide counsel to the individual. [/quote:3vele9ih] Not with Rule 11. Please read my blog for more information on the "blow to civil rights" that is FRCP Rule 11 in the US. They wouldn't let me get evidence to support my claim. The rule stopped the process of discovery from happening. [quote:3vele9ih] - If the above qualifications apply (legitimate claim; credible evidence), then the issue should not be laid upon the public. I do not see the purpose or value in doing that. [/quote:3vele9ih] In the U.S. it is the purpose of civil litigation to use the public to determine matters when privately people can't work it out. That is what we were trying to do with our case. Unfortunately, those civil liberties have been eroded by the partnership between big business and government. [quote:3vele9ih] THIS IS JUST MY OPINION. I have not taken the time to review the available details to know how legitimate and credible Herbert's claim is. [/quote:3vele9ih] No offense to you, sir, as I'm sure you are "busy", but why share an opinion if you haven't understood, fully, the situation? Kind regards, -h
Re: your personality type? - Hi Michelle! If you are the present-moment focused, this is your result. If it doesn't seem spot on, I'll give you the big-picture focused result. The Enjoyer of Life. You enthusiastically enjoy experiencing the five senses, creative pursuits and social harmony in the here-and-now. You are independent, socially upbeat, and enjoy creating a positive and happy atmosphere. Despite your outgoing “persona,” you are a private person and few people truly know you well). #1 Strength: Comfort Creator #2 Strength: Expressing Social Feeling 1) Comfort Creator -- Creating a comfortable physical environment. Feels the ?ve senses vividly. Adept at using objects, or ?nding or building objects, to make a physical space the most soothing to all ?ve senses. Also organizing so objects are easily found in a convenient way. Both the physical comfort of self, and others, is important. Often feel a need to ensure those close to them are warm enough, fed, rested, etc. Will easily offer help to others in these areas, lending a jacket, or offering a snack. 2) Expressing Social Feeling Setting an emotional tone, vibrant, energetic, or serious, etc. Concerned with the emotional environment as it?s happening -- the vibe of people at a party, the tone of a situation, other people?s responses. Setting the tone -- dramatic and serious, or lighthearted and a celebration. Emotional displays are important for knowing how others are feeling, whether bad or good. Someone talking in a monotone about feelings seems insincere. Feels should be shown, so they can be read by others. Your best type would be: The Conceptualizer. You are an inventive creator of logical systems of possibilities that you use to create processes, products or strategies. Socially, you are sometimes quiet, but also find yourself acting as the life of the party, especially when you get caught up in a debate or entertaining topic of conversation. #1 Strength: Generating Future Possibilities #2 Strength: Systematic/Rule Logic


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Is the Media to blame for losses in super?

Qualities of Leadership Part 1

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.