Thursday, 19 August 2010

Guess who?

Which 'superficial' blogger (see http://behaviouralinvesting.blogspot.com/2010/07/barbie-does-economics.html) dared to utter these wonderfully insight words?

"The completeness of the [orthodox] victory is something of a curiosity and a mystery. It must have been due to a complex of suitabilities in the doctrine to the environment into which it was projected. That it reached conclusions quite different from what the ordinary uninstructed persons would expect, added, I suppose to its intellectual prestige. That its teaching, translated into practice, was austere and often unpalatable, lent it virtue. That it was adapted to carry a vast and consistent logical superstructure, gave it beauty....But although the doctrine itself has remained unquestioned by orthodox economists up to a late date, its signal failure for purposes if scientific prediction has greatly impaired, in the course of time, the prestige of its practitioners. For professional economists...were apparently unmoved by the lack of correspondence between the results of their theory and the facts of observation - a discrepancy which the ordinary man has not failed to observe. "

And

"Too large a proportion of recent 'mathematical' economics are mere concoctions, as imprecise as the initial assumptions they rest on, which allow the author to lose sight of the complexities and interdependence of the real world in a maze of pretentious and unhelpful symbols"


None other than the late great John Maynard Keynes


2 comments:

mike said...

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DC said...

I recently saw a TED talk that touched on some of the ways that love and money management suffer from similar cognitive biases - cool stuff! Keep up the good work....

http://www.youtube.com/watch?v=1kh9nqG8TyA&feature=youtu.be