Monday , December 23 2024
Home / Lars P. Syll / On the irrelevance of economics

On the irrelevance of economics

Summary:
On the irrelevance of economics I believe that as an economic theorist, I have very little to say about the real world and that there are very few models in economic theory that can be used to provide serious advice. However, economic theory has real effects. I cannot ignore the fact that our work as teachers and researchers influences students’ minds and does so in a way with which I am not comfortable. Can we find a way to be relevant without being charlatans? As economic theorists, we organize our thoughts using what we call models. The word “model” sounds more scientific than “fable” or “fairy tale” although I do not see much difference between them. The author of a fable draws a parallel to a situation in real life. He has some moral he wishes to

Topics:
Lars Pålsson Syll considers the following as important:

This could be interesting, too:

Lars Pålsson Syll writes Andreas Cervenka och den svenska bostadsbubblan

Lars Pålsson Syll writes Debunking the balanced budget superstition

Lars Pålsson Syll writes How inequality causes financial crises

Lars Pålsson Syll writes Income inequality and the saving glut of the rich

On the irrelevance of economics

I believe that as an economic theorist, I have very little to say about the real world and that there are very few models in economic theory that can be used to provide serious advice. However, economic theory has real effects. I cannot ignore the fact that our work as teachers and researchers influences students’ minds and does so in a way with which I am not comfortable. Can we find a way to be relevant without being charlatans?

On the irrelevance of economicsAs economic theorists, we organize our thoughts using what we call models.
The word “model” sounds more scientific than “fable” or “fairy tale” although I do not see much difference between them. The author of a fable draws a parallel to a situation in real life. He has some moral he wishes to impart to the reader … Being something between fantasy and reality, a fable is free of extraneous details and annoying diversions …

We do exactly the same thing in economic theory … We perform thought exercises that are only loosely connected to reality and that have been stripped of most of their real-life characteristics.

Ariel Rubinstein

Lars Pålsson Syll
Professor at Malmö University. Primary research interest - the philosophy, history and methodology of economics.

Leave a Reply

Your email address will not be published. Required fields are marked *