Economics Profession

Changing the incentives for how economists determine both the content of the subject and their approach to scientific research could increase the range of thinking in the profession

Economic theories are powerful things, to be used and misused. Those who write economic theory and do economic policy need to be aware of the consequences of what they are doing.

In this short interview, Institute co-founder George Soros tackles the question at the heart of the Institute’s mission: What’s wrong with economics and what can we do to change it?

“Four men sat at a table. Raised sixty floors above the city, they did not speak loudly as one speaks from a height in the freedom of air and space; they kept their voices low, as befitted a cellar.”

In the wake of the 2008 financial crisis, many of our policy makers and top economists are still stumbling in the dark.

The recent debate about the reproducibility of the results published by Carmen Reinhart and Kenneth Rogoff offers a showcase for the importance of replication in empirical economics.

So why am I hopeful about the future?

At the heart of economics is a theory of action. It reflects views about how human beings make economic decisions and leads to an analysis of aggregate consequences.

Neoclassical economics has abolished the role of psychology in decision making by assuming that all individuals are rational optimizers with rational expectations about future events.

What is the purpose of economics?

INET researchers have continued their innovative work and are finding larger platforms and eager audiences for it.

Economics is very theoretically comfortable with what may be termed `Keynesian’ waste.

Two Nobel laureates, an election, and a shaky economy. The message? We can do a whole lot better.

What makes a good model?