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    Some Questions for the Economists in the House.

    By amike on Mon, 03/02/2009 - 4:53pm |
    I tell my history students to ask questions.  I beg them and implore them to ask questions if something is confusing them.  Some do, some don't.  It just struck me I'm not practicing what I preach, and that I should raise my hand from the back row and ask my TPM mentors about some things about which I'm ignorant.  So here goes.

    • First: is there a difference between an academic or theoretical economist and a "business economist".  I get the latter cited as authorities on news programs like the Morning Business Report or any of the PBS news programs...Chief Economist of X or Market analyst at Y-you know the kind of thing.   Without impugning anyone's integrity, really, how possible is it to speak truth to power when power signs the check?  Is there danger in believing one's own forecasts, for no other reason than a model bias created by one's allegiance to one's employer?  I'm trying to understand a rationale behind the "nobody would have guessed" meme I've heard over and over.  Maybe no run-of-the-mill business economist would have guessed because he/she had too much invested, psychologically and personally, to take off the rose colored glasses.

    • Second: what is taught in current curricula in the field of finance?    I know there must be a difference between economics on the one hand and finance on the other: otherwise why the two degrees?  I started thinking about this as a reaction I had to an interview I heard on NPR last week.  Someone else blogged about this interview-I have to confess I don't remember whom.  Anyhow, the person interviewed was a Professor of Finance-I don't remember the name and a quick scan of last week's programs doesn't turn up a title which rings a bell.   Anyhow, he spoke very emotionally when he said something to the effect that he doesn't know what to teach his finance students any more.  So, what have they been learning in the last 25 years or so?  Can some of our problems today be linked to curricular flaws in finance, and if so, isn't reform in finance education something of a must?

    What do you all think?  If you want a quick lesson on Cotton Mather I can offer that as payment.

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