Jun 17, 2022
Why have economists got things so wrong?
What is 'guessonomics'??
And what are the dangers of groupthink?
In this week’s 5 Big Questions interview we talk to Ivy League professor, global economics expert and former Bank of England adviser PROFESSOR DAVID G "DANNY" BLANCHFLOWER CBE
Twitter: @D_Blanchflower
Known for:
- Bruce V Rauner Professor of Economics - Dartmouth College, New Hampshire (USA)
- Research Associate - National Bureau of Economic Research (USA)
- Contributing Editor - Bloomberg TV
- Former Member of the Monetary Policy Committee - Bank of England
- Author - The Wage Curve
The Big 5 Questions:
- How do you measure the impact of what you do?
- How should people/businesses be preparing for the future?
- How do we build the workforce we need for that future?
- How do you use creativity to solve problems?
- How do you collaborate?
Key quotes:
“Try and think about the wellbeing of ordinary people. What would benefit ordinary people? And oftentimes that runs in contrast to what central bankers and others are doing. Very often they represent the interest of banks and hedge funds.”
“Great, I thought your job was to not cause recessions!”
“Often all they’re doing is just making it up. This is all about ‘guessonomics’. If you’re going to forecast the weather, the reason you can do that is you’ve got past data on weather patterns that tell you what’s coming. We’re in a situation where we’ve got no data points. Basically we’re running blind.”
"When ideas are complicated and the situation is uncertain, you probably should worry if you hear everyone at both the Bank of England and at the Fed in the United States saying the same thing, that sounds awfully like groupthink.”
“Write papers that address real world practical problems. If you can’t characterise that it’s better off doing something else. In many cases the economist would’ve been better off delivering pizza than writing these silly papers. I said that once and somebody said to me, no that would be a really bad idea. If we gave economists the pizza delivery job, they’d just deliver it to the wrong house.”
Useful links:
David Blanchflower bio (Wikipedia) // wikipedia.org/wiki/David_Blanchflower
website // davidblanchflower.com/
Professor profile page at Dartmouth // economics.dartmouth.edu/people/david-graham-blanchflower
Writing in The Guardian // theguardian.com/profile/davidblanchflower
Bank of England Monetary Policy Committee (MPC) // bankofengland.co.uk/about/people/monetary-policy-committee
The National Institute for Economic and Social Research (NIESR) // niesr.ac.uk/
David G. Blanchflower — Not Working - Where Have All The Good Jobs Gone? (via Hive) // hive.co.uk/Product/David-G-Blanchflower/Not-Working--Where-Have-All-the-Good-Jobs-Gone/25343911https://www.hive.co.uk/Product/David-G-Blanchflower/Not-Working--Where-Have-All-the-Good-Jobs-Gone/25343911
David G. Blanchflower — Not Working - Where Have All The Good Jobs Gone? (via Amazon) // amazon.co.uk/gp/product/B08KKZ4P6J/ref=dbs_a_def_rwt_hsch_vapi_tkin_p1_i0
This episode was recorded in May 2022
Interviewer: Richard Freeman for always possible
Editor: CJ Thorpe-Tracey for Lo Fi Arts