Economists are too detached from the real world and have failed to learn from the financial crisis, insisting on using mathematical models which do not reflect reality, according to the Bank of England’s chief economist Andy Haldane.
The public has lost faith in economists since the credit crunch, he said, but the profession has failed to thoroughly re-examine its failings to come up with a new model of operating.Instead, he fears, it is still using the same failed analyses, and is still failing to speak effectively to the public
This applies to an all manner of areas, from studies of the financial meltdown to analysis of the Brexit vote.
“The various reports into the economic costs of the UK leaving the EU most likely fell at the same hurdle. They are written, in the main, by the elite for the elite,” said Mr Haldane, writing the foreword to a new book, called ‘The Econocracy: the perils of leaving economics to the experts’....The Telegraph
Economists need to get into the real world, says Bank of England chief economist