Economics as a vaccine against economists?

On Friday a quote from the great Cambridge economist Joan Robinson was circulating on Twitter:

Purpose of studying economics – to learn how to avoid being deceived by economists

In fact, the full quote is:

The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists.

This pretty much sums up the spirit in which I teach economics to policy students, so I thought it was worth a Retweet.

But it triggered a bit of deeper reflection. Read more of this post

Economists, implicated

John Maynard Keynes famously wrote that “[i]f economists could manage to get themselves thought of as humble, competent people on a level with dentists, that would be splendid”. Many economists, somewhat uncharacteristically, might well be craving that type of anonymity at the moment. Because they’ve been getting a hard time of it. And the discipline may be about to get even less popular.

The arrival of the film Inside Job is likely to fuel the public’s anger at bankers for causing the financial crisis. And not only causing the financial crisis, but subsequently carrying on with business pretty much as usual, while the fallout of the crash is felt in public spending cuts, unemployment and welfare benefit reductions.

But the film does more than that. It broadens the scope of criticism to implicate a range of other professionals. It wasn’t just the corporate bankers: lawyers, central bankers, accountancy firms, lobbyists and government officials were also complicit in pushing a deregulatory agenda. Their actions magnified systemic risk and increased the instability of the financial system in ways that theory said shouldn’t happen. The real world clearly hadn’t read the script.

In amongst the culprits identified are academic economists. Read more of this post