Tuesday, December 2, 2008
There are days when economists prefer to be philosophers or simple supporters of different schools of thought. Econblogger Winterspeak.com summarizes this situation in his article here . Economists debate is open, narrative and backward-looking. It looks a puzzle. It's a pity that we cannot do anything better than looking to the past and died economists to interpret the present crisis. Some feel a bit guilty and get confessing their sins of bad forecasting here and there. Others get into a nice Cassandra hunt, which does not show many European ones. We all know that economists are not forecasters as normally if they tell you how much they do not tell you when or vice-versa. Is this crisis too bad for economists but good for philosophers? It would be better and more interesting to hear from those economic and financial advisers who got it wrong but are now willing to be held accountable and tell us the true story. Unfortunately the recession and the financial crisis effects are telling Main Street what Wall Street and those economists, advisers and managers do not want to tell, the true story, which can be made of sins and not fatal flaws. An old accounting say reminds that recession "uncovers what auditors can't". It would be better if this process had maximum transparency and disclosures, not only of balance sheets. I wonder where we are in Europe in this respect.