Have a look at the monograph. It’s an interesting read (although some years since I read it)

Economists, like all people, follow the incentives in front of them. I like the idea of communicating with the public – but the choice of whether to and how to communicate is one for the individual economist.

Our site likes to eat things – it is nothing personal, your words must have just tasted good.

A Plea to Economists Who Favour Liberty: Assist the Everyman ed
by David Klein on the IEA website.

“Should economists remain as detached scholars, pursuing their research to the satisfaction of themselves and fellow academics? Or should they try to educate their fellow men and women in economic ideas, hoping to have an impact on economic policy?”

I replied but seems to have been lost in the ether. I think I share common work place in NZ with Patrick although I predate by many by years. I sent you link to monograph on role of economists but will dig outs again. i go to the odd Reform event but as mainly held in work hours little more difficult than many.

His work on trade theory was great, and also he had some awesome stuff on the Japanese crisis.

Economists definitely aren’t the guiding hand! They are a bunch of guys and girls who are trying to describe trade-offs, and make sure people realise there is no free lunch. We are sort of like the grinch that stole Christmas.

Indeed I’m Patrick’s baby brother – I’ll be sure to pass on the comment!

Indeed, in NZ the central bank is trying to focus on the orderly winding down of banks for that very reason.

I do not know enough about the specifics in the UK to offer much I’m sorry, hopefully our UK correspondent can get involved!

Yes clearly his work on trade theory must have been tops (not that I’ve read any of his work in this field). What is the role of economists? Clearly not to be the guiding hand of the macroeconomy. The IEA issued an interesting paper on this subject some years back. I will try to find a link. Are you related to Patrick Nolan at Reform? Reform do some very good work.

I agree that at the start of the crisis QE in UK and US was probably the right response. It is interesting that the Irish last week monetised the debt of Anglo Irish Bank without reference to the Euro central bank. The policy responses to the crash in UK have I suspect by and large been unhelpful, particularly regulatory. Financial services are becoming bound up in pointless and corresive regulation that doesn’t solve, or does little to solve, the problems. Banks need a mechanism that enables them to go bust and to be unwound in an orderly fashion. Instead politicians are trying to regulate away risk raising bareers to entry and concentrating power in the hands of the current players. Splitting invetsment banking from retail will do little to reduce risk, will drive up the cost of capital and will not solve issues concerning tax payer underwriting.

I’m not sure about the specifics in the UK – but one thing I noticed was that they don’t measure inflation over there (the comovement in prices). CPI growth is a proxy, but communication would benefit with a real measure.

What asset price changes mean needs to be communicated better. But how this is incorporated to policy is a pretty large issue – there is no silver bullet, and the idea of macroprudential regulation is seen as part of the way forward.