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The reinvention of economics after the crash

By Quartz

Economics is searching for its third act. Over the past few decades, the field had become more self-assured, harnessed more mathematics, and moved further awayRead full story

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  • Dr. Dambisa Moyo
    Dr. Dambisa MoyoproGlobal Economist & Author

    One of the great challenges of economics is that, although treated as a science, it is a subject so heavily influenced by the vagaries of human behavior and thus struggles with precision forecasts. With China’s recent economics success traditional economics models steeped in (western) ideology will come under greater challenge.

  • Eshe Nelson
    Eshe NelsonReporter at Quartz

    In the 20th century, macroeconomics went through two major revolutions in thought. Now the profession is overdue a third.

    Since the financial crisis, economics has been through a painstaking period of soul-searching. This story focus on efforts to update macro models for today's problems. I promise it's not as wonky as it sounds!

  • Xana  Antunes
    Xana Antunes Executive Editor at Quartz

    Eshe Nelson's final story in a three-part series does a masterful job of getting at the disruption roiling the economics profession since its epic failure to prepare or deal with the global financial crisis 10 years ago. We can see the disruption taking root in the world's top tier universities, where students are demanding we rethink Econ 101, and permeating into the profession's most cloistered corners, all the way up to the Federal Reserve. And this matters. Our understanding of how the global

    Eshe Nelson's final story in a three-part series does a masterful job of getting at the disruption roiling the economics profession since its epic failure to prepare or deal with the global financial crisis 10 years ago. We can see the disruption taking root in the world's top tier universities, where students are demanding we rethink Econ 101, and permeating into the profession's most cloistered corners, all the way up to the Federal Reserve. And this matters. Our understanding of how the global economy works informs policy at every level of government. Change is essential, and a huge opportunity.

  • Helen Edwards
    Helen EdwardsAlways curious at Koru Ventures

    Reading this series has been a great “fill in the gaps” education. If the world tried to build bridges, roads, rockets, factories off pure science, without the benefit of engineering as a stand-alone discipline, it wouldn’t work. Is that what economics needs? A whole new field with a fundamental focus on real world application, design and practical human use?

  • John Mancini
    John ManciniGlobal news editor at Quartz

    The search for reliable economic models that address how money moves around the world today isn't only about financial impact. It's key to dealing with the messes capitalism has created, from income inequality and the unhappiness that permeates so much of modern life to climate change and the future of the planet.

  • William Wood
    William WoodOwner at William Wood

    Mathematics is a good tool, it can measure results, in the past. Make predictions based on past results. But, when it comes to the future, results are often quite different from the mathematical results. Measuring human behavior is a very inexact science. This makes the article”s theme, questionable. The art of forecasting the future, is that, an art. One example, economists often use the interest rate curve, to forecast recession ps. They state an inverted yield curve (short term interest rates

    Mathematics is a good tool, it can measure results, in the past. Make predictions based on past results. But, when it comes to the future, results are often quite different from the mathematical results. Measuring human behavior is a very inexact science. This makes the article”s theme, questionable. The art of forecasting the future, is that, an art. One example, economists often use the interest rate curve, to forecast recession ps. They state an inverted yield curve (short term interest rates, higher than long term) almost always forecasts a recession. I suggest, in the current environment, the same may not hold true. We are coming out of a near zero environment, and are, only recently began to raise rates. Never been here before. Even more distorting, undoing QE, the Fed has already removed some $500 Billion from the economy. This also is unique in our economic history. I suggest the yield curve will misbehave, and not indicate anything, except anew result.

  • Ben Wright
    Ben WrightBusiness Editor at The Telegraph

    Awhile ago I wrote a column about what economics could learn from literature: https://www.telegraph.co.uk/business/2016/10/18/want-to-know-why-central-bankers-cant-solve-the-worlds-problems/

  • Nick  Cole
    Nick Cole

    Money can’t make you happy, but maybe sometimes it can keep you comfortable in your misery. - paraphrased, Clare Booth Luce.

  • The points made here about the failure of economics to predict the 2008 crisis and its subsequent search for ways to fix the discipline can also be made about intl relations and the global rules based order. It’s not in good shape and needs fixing and the lessons economics has drawn have good parallels for global politics.

  • neil murphy
    neil murphy

    Agenda driven article, not to be taken seriously.

  • Brandon Holden
    Brandon Holden

    Take note.

  • Gbirel RA
    Gbirel RAall at kimg

    Love y wseeit

  • Dustin Casper
    Dustin Casper

    Prepare thy self

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