John Kay on Circular Thinking and Economics

Here is a beautifully crafted essayby leading economist John Kay on the dangers of an academic obsession with rigour and consistency in developing economic models. "Economics is not a technique in search of problems but a set of problems in need of solution. Such problems are varied and the solutions will inevitably be eclectic." He argues for a move away from formulating models that can simply run on a computer and towards "more eclectic analysis ....requiring an understanding of processes of belief formation, anthropology, psychology and organisational behaviour, and meticulous observation of what people, businesses, and governments actually do."A rather wonderful piece that will excite many ambitious student economists keen to approach our fantastic subject in a non-linear and often contrarian way. Enjoy!