Contact Us   |   Sign In   |   Join Now
Global Business School Network Blog
Blog Home All Blogs
Search all posts for:   


View all (442) posts »

Who Saw the Recession Coming? Not your Economics Professor

Posted By Guy Pfeffermann, Monday, October 05, 2009
Updated: Wednesday, February 13, 2013
Guy PfeffermannWhy did most professional economists – and especially academic economists – fail to predict the financial meltdown? Wearing my hats of former chief economist for World Bank’s Latin American Region, and later for the International Finance Corporation, I was delighted to read Harold Meyerson’s article (below). He argues, rightly in my experience, that most economists are trapped in a fantasy universe, in which the laws of supply and demand ensure that bad things not only won’t happen, but cannot ever happen. I used to have a bumper sticker on my car in the 1970s: THE REAL WORLD IS A SPECIAL CASE. Even back then, academic economists were gaining credentials by dint of mathematical "models” they built, which were drifting toward a Cloud-Cookoo Land of total disconnect from real-world problems. Luckily for me, I am ungifted in maths and spent my time working with emerging markets' governments at trying to solve practical problems, and this saved me from irrelevancy.

A point similar to Myerson’s was made years ago by Professor David Colander, in a book felicitously entitled "Why Aren’t Economists As Important As Garbagemen? Essays on the State of Economics”.

Are Colander and Myerson right? I am looking forward to your views.


Read full article

Guy Pfeffermann is the founder and CEO of the Global Business School Network.

This post has not been tagged.

Share |
Permalink | Comments (0)
more Upcoming Events

9/26/2016 » 9/30/2016
AABS Teaching the Practice of Management Workshop

9/28/2016 » 9/30/2016
24th CEEMAN Annual Conference

9/28/2016 » 9/29/2016
SEED Africa Symposium 2016

10/5/2016 » 10/7/2016
1st Global Entrepreneurship Development (GEDC) Conference

Membership Management Software Powered by®  ::  Legal