Rethinking what every economics student needs to know (original) (raw)
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Today's Problems in The Minds of The Great Economists
Today's Problems in The MInds of The Great Economists, 2021
This book presents the history of economic thought as it relates to today’s most pressing problems, and it emphasizes the critical connection that exists between what may seem cold, unrealistic mathematical economic models, and the quality of everyday life of any citizen of the planet earth. It shows how contemporary developments in neoclassical theoretical models in Welfare Economics, General Equilibrium Theory, Information Economics and Game Theory have created the necessity to integrate the neoclassical theory of free markets and the institutional theory. It argues that while the main goal of economics is to improve human wellbeing in a broad sense, the quality of human life; we should also take into account its second goal, which is to improve the microeconomic efficiency of the system. We should not lose sight of the fundamental contributions of the free markets, and of neoclassical economics which have seriously influenced the digital and financial revolutions that have allowed the ICT Revolution to happen. Individual freedom and creativity are critical for the success of capitalism. But they do not happen in a vacuum, institutions are required. It argues that the future of economic theory and policy will be defined by contributions in three fronts: pure theoretical models of free markets, institutional models, and models capable to integrate the interaction between free markets and institutions in the final determination of the actual economic equilibrium.
Economics as meant, a normative discipline
Presented at the ETF in Leuven 25 February 2017. On the basis of the understanding that economics is about relations rather than individuals (Bovenberg et al., March 2016) it distinguished 4 types of relations that organize how people get what they need (belonging, hierarchy, dependence and shared commitment) and consequently 4 types of economy (exemplified with kinship, states, markets and ideals). Homo economicus is reconceptualized as an animal that is social because of its limited mental capacities. Economists are called to take moral responsibility for the performative power of the parables they build which shape economic reality, e.g. markets as we know them, with all their problems.
The American Economist, 2020
The book by John Komlos (2019) makes a valuable contribution to the literature. It will probably work better, however, as a reference text for teachers and scholars than as a textbook for "Econ 101." As detailed in this review, the key for determining how the book will be useful is identifying its dominant function. The structure of the book is straightforward. Chapter 1 serves as the Introduction: "Welcome to Real-World Economics." Chapters 2 through 13 are the main content. Chapter 14 discusses the lead up to, and then the U.S. response to, the 2008 economic crisis. Chapter 15 is "Conclusions: The Foundations of Real-World Economics." Each chapter includes footnotes that tie into the literature. The book includes figures, 18 tables, 13 illustrations, and a comprehensive index. In the Front Matters section, there are two paragraphs indicating the purpose of the book and its intended audience: This textbook offers students a valuable and introductory text with insights into the working of real markets not just imaginary ones formulated by blackboard economists. .. for students. .. this textbook redresses the existing imbalance in economic teaching. .. . [the book] sketches the outline of capitalism with a human face, an economy in which people live contented lives with dignity instead of focusing on GNP. (p. i)
Reckoning with markets: moral reflection in economics
Choice Reviews Online, 2012
In this new volume targeted to undergraduate students of economics, James Halteman and Edd Noell lament the fact-value distinction found in modern economics. This distinction is usually framed within neoclassical economics by way of the dichotomy between "positive" and "normative" economics. Bade and Parkin's Essential Foundations of Macroeconomics (2013), a typical introductory textbook, provides a standard articulation: Disagreements that can't be settled by facts are normative statements-statements about what ought to be. These statements depend on values and cannot be tested.… Economists as social scientists try to steer clear of normative statements.… Disagreements that can be settled by facts are positive statements-statements about what is.… A positive statement … could be right or wrong, and it can be tested" (13).
Economics: Human Action and Its Meaning
CME Edu Paper, 2020
What is Economics? I have the impression that the economists’ community is no more wondering about the scope and the meaning of the discipline. This could be because of the belief that a general agreement on the matter is reached (and thus the question does not need to be posed anymore) or because the ‘experts’ lost interest in this kind of ontological questions. Most probably, it is a combination of both factors. Looking at the crisis that economics is experiencing, and at the light of the interesting debate about its future directions, I think it is interesting to reflect again on what I believe economics is. An increased self-awareness can help in better developing expectations about what economists can do and what they cannot do. In this paper I will define economics following a different general approach to economic problems, an approach that, because of its emphasis on meaning, has been called ‘radical subjectivism’ (Storr, 2017). At the light of this approach, it is possible to develop a general theory for the economic system, with the possibility of globally responding to economic questions within a broad paradigm. Moreover, such a paradigm has to incorporate two fundamental elements disregarded by mainstream economics: real people and real time.