Yael Selfin, UK Chief Economist explains why having a greater diversity of economic models can help improve the quality of financial analysis and help rehabilitate the economics profession across the general public.
For many observers, the economics discipline appears to be in a crisis. The shock and the subsequent response to the Global Financial Crisis have highlighted the weaknesses in the methods and prescriptions of economists. From the apparent failure to correctly identify the risks to the global economy building up in the financial sector before the crisis, and the lack of a consistent advice that would pull the economy through the recovery, the failures of the profession have caused tremendous harm and suffering for millions not just in the UK, but around the world.
In this article, KPMG’s UK Chief Economist, Yael Selfin argues that a new approach, which allows for a greater diversity of views along with a greater focus on empirical testing can help us improve the quality of our analysis and over time, with a lot of hard work, can help rehabilitate the profession in the eyes of the general public.