Clarity and freshness

In a recent New York Times blogpost Paul Krugman responds to a correspondent who complained about the looseness of his writing. Starting sentences with ‘And’ or ‘But’ seemed a particular irritant. Krugman is only too conscious of the challenge he faces. The subject matter he is dealing with is generally very dry. If he is going to make it accessible to interested non-specialists then it has to be written with some verve. And that may require taking a few stylistic liberties.

Krugman is constantly vigilant against producing indigestible economic stodge. I think he succeeds. Especially if you compare his popular writing with some of his work of professional economic audiences, some of which can be a little stodgy at times. Krugman cites George Orwell’s 1946 essay Politics and the English language as his ‘bible’.

I read Krugman’s piece on my phone while on the train. So, being at a loose end, I thought I’d reread Orwell’s essay.  Even though it’s one of the most famous pieces of criticism of political writing, I’d forgotten quite how great it is. Read more of this post

On economic amnesia

Economists, one might assume, have something useful to say about the current problems afflicting the world economy. Yet, since the crash of 2008 there has been a considerable amount of reflection in parts of the discipline about its failure to anticipate the crash and its failure to offer effective prescriptions for getting the economy out of the hole it’s in. Of course, elsewhere in the discipline it is business as usual – with a range of prescriptions for privatisation and deregulation at the microlevel and fiscal restraint at the macrolevel.

This week’s Nobel announcements are salutary in that respect. Olaf Storbeck described them as a prize for the Ancien Régime. He was criticised for doing so, but his intervention might be better seen as simply the most recent in a chorus of disapproval directed at an approach to macroeconomics that came to dominate the field. Thomas Sargent, who shared this year’s prize, did as much as anyone to propel rational expectations and new classical macroeconomic models to the forefront of the field, and his macroeconometric work has been hugely influential. That is why he was awarded the Nobel prize. But that can be separated from the question of whether, looked at from a broader perspective, such models actually shed much light on the way the economy operates.

Some see the solution to the problems afflicting macroeconomics as the need to search for new ideas. Paul Krugman has recently argued, on the contrary, that the problem is that the discipline has amnesia. Read more of this post