Back to the roots

Rumblings against orthodoxy are growing stronger..here is a piece by Kaletsky on the need for economics to get a 'new' paradigm..its conclusion: Economics today is a discipline that must either die or undergo a paradigm shift—to make itself both more broadminded, and more modest. It must broaden its horizons to recognise the insights of other social sciences and historical studies and it must return to its roots. Smith, Keynes, Hayek, Schumpeter and all the other truly great economists were interested in economic reality. They studied real human behaviour in markets that actually existed. Their insights came from historical knowledge, psychological intuition and political understanding.

Protectionism debate again!

With the global economy hit badly, the protectionist debate rears up again. There's a good report out on VOXEU on the collapse of global trade, murky protectionism and the global crisis - worth a read. Murky protectionism (including for instance clauses in the bailout packages that confine spending to domestic producers) now encompasses not just the emerging economies, but also the advanced North. For those confused about who is right and who is wrong, Duncan Green of Oxfam on the VOXEU gobal crisis debate, who sums up neatly, ' Don’t get me wrong, I still think protectionism is a lousy idea for the North, but we need to be more nuanced when it comes to development. Good thing or bad thing? Answer – sorry - it depends on who you are (and how you do it)."