My advice to Rachel Reeves? Learn how to spin a yarn
Macroeconomists spend much of their lives immersed in highly mathematical models of the economy. But at the top of the profession there is increasing interest in a much older tradition of what really drives the economy. Namely narratives. The story which people believe can be the key determinant of behaviour. Everyday commentary on the economy […]
Economics is doing just fine, thank you, without adopting psychology’s blunders
Criticisms of economics have abounded since the financial crisis. Even Nobel Prize winners like George Akerlof of Berkeley have got in on the act. A key demand is for economics to adopt a more recognisably human portrait of behaviour in its theories than the rational calculating machine of the textbooks. Psychology rather than pure economic […]
