Wednesday, August 14, 2013

Greg Mankiw and Raghuram Rajan

Nicholas Gregory Mankiw , Economics Professor at Harvard University, is associated with right-wing economists and supportive of Republican policies. He is well-known for enunciating "ten principles of economics".

He quotes Raghuram Rajan in his blog:

"SATURDAY, AUGUST 10, 2013


Wisdom from Raghu Rajan

"For economists who actively engage the public, it is hard to influence hearts and minds by qualifying one’s analysis and hedging one’s prescriptions. Better to assert one’s knowledge unequivocally, especially if past academic honors certify one’s claims of expertise. This is not an entirely bad approach if it results in sharper public debate.
"The dark side of such certitude, however, is the way it influences how these economists engage contrary opinions. How do you convince your passionate followers if other, equally credentialed, economists take the opposite view? All too often, the path to easy influence is to impugn the other side’s motives and methods, rather than recognizing and challenging an opposing argument’s points. Instead of fostering public dialogue and educating the public, the public is often left in the dark. And it discourages younger, less credentialed economists from entering the public discourse."

Read more at http://www.project-syndicate.org/commentary/the-declining-quality-of-public-economic-debate-by-raghuram-rajan#Xlo2wzGUe2FcbYDZ.99"

Paul Krugman, a liberal economist, had earlier mocked at Reinhart and Regoff for their goof-up in relating national debt and GDP growth. Rajan probably has in mind Paul Krugman and / or Amatya Sen and Jagdish Bhagwati while making the profound statement quoted above.

It is also possible that Rajan is politely referring to Lawrence Summers who had earlier impolitely called Rajan as "somewhat Luddite and mostly misled". It is better to be Luddite and forecast correctly than to be contemporary and erroneous in predictions.
 

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