Category Archives: Economics

Shoigu, the Economist

Explaining growth of the military budget Shoigu refers to founder of political economy Adam Smith saying that in his work “An Inquiry into the Nature and Causes of the Wealth of Nations” he stated that defense of the country was more important than wealth and called the military art “the noblest of all arts.” Thus, Shoigu concludes that it is not worth arguing with Smith proposing an alternative “army or economy.”

Source: WPS Observer.

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Why Economists Failed to Predict the Crisis and How to Avoid the Next One

The London School of Economics and Political Science has been a great job publishing its lectures as podcasts. I very often hear them, to maintain the contact with Economics. One I recently heard was Professor Lord Desay’s “Hubris: Why Economists Failed to Predict the Crisis and How to Avoid the Next One.” He presented his book of the same title. For me it was specially interesting, since he covered some methodological aspects of Economics as discipline that I’ve been researching myself.

He did it in a manner that I call “Economics for adults.” Economists have been accused of loosing contact with reality for years. I have to admit it is true and one of the most significant issues for the profession. The problem is that we have very solid mathematical models, based on a very fragile theoretical and philosophical basis and often based on ideological presuppositions and political wishing. Professor Desay made an analysis, even if superficial, of these issues. Watch the video:

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