This article makes the case for dilettantism.
Source link: http://blog.mises.org/6551/economists-should-do-what-interests-them/
Economists should do what interests them
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{ 3 comments }
it is all too bad that economists have failed miserably in explaining the current phenomenon of asset inflation, inflation in general and the way its affects real people.
it is tragedy that they are spending their time writing silly books like “freakonomics”.
Austrian economists have the tools to do the job, however, they spend most of their time answering back mainstream economists silly assertions.
we better change our ways soon before this whole house of cards (which is the current economic environment) collapses. Otherwise, freedom will loose big time.
olmedo
To be fair, Austrian Economics have broadly explained most of the major economic phenomenon in Human Action, Man Economy and State, etc. The reason we spend most of our time at the present arguing with other economist’s is because we are trying to change their views or show them the error of their ways.
And in my eyes, what Levitt and his fellow “economists” do is nothing more than econometrics and applied statistics, a useful field to be sure (just ask hedge fund managers or correlation traders), but not economics in the way I think of it.
That may seem like semantics, but I believe it is an important distinction that ought to be made.
and I agree with that.
the problem that I have is that we haven’t gone much further than that.
for example: in the day and age of hedge funds, risk arbitrage, derivatives we are still talking about “fractional reserve banking”.
Austrian business cycle theory is great however, we haven’t gone much further in the sense that we understand very little on how it affects profits distribution or asset prices in the economy.
I must admit that one of my favorites web sites is prudentbear.com where Doug Noland writes his “economic bubble” column. he is not a academic economist however he actively using Austrian tools to understand the current financial exuberance and I tell you, it is scary but immensely fascinating. I think you can help him out. He is and example to follow.
olmedo
pd. roger garrison latest piece, at mises.org, on “neutral and natural rates…” is a good example of the way things ought to be for professional Austrian’s economists.
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