February 2009 - Posts - An Awkward Corner

February 2009 - Posts

Foxes, Hedgehogs, Forecasters

Posted by Niranjan Rajadhyaksha at 
How much do stock market analysts and economists really know about the future? Not as much as some of them claim --- or claimed till recently. A professor of organizational behaviour offers us some simple rules to understand which economic and stock market forecasters to trust and distrust. Philip Tetlock borrows a concept made popular by the philosopher...

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And Now: Balance Sheet Recessions

Posted by Niranjan Rajadhyaksha at 
The pace at which economic activity is shrinking around the world despite huge government interventions has experts worried and puzzled. Just as there is a new respect for unconventional policy measures --- from zero interest rates to bank nationalizations --- there also seems to be a new love for unconventional explanations of what has and could happen...

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The Problem With Dream Teams

Posted by Niranjan Rajadhyaksha at 
The road to policy hell is often paved with good intentions. So: 1. You put together a team of very bright people to solve your country's economic problems. 2. You forget the rather obvious fact that very bright people also have very large egos. 3. You put them together in a room. 4. The sparks fly. 5. There is a lot of heat, little light and even...

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Satyam, Raju And Two Cows

Posted by Niranjan Rajadhyaksha at 
Remember the use of two cows to illustrate the difference between capitalism, socialism, communism etc? Socialism You have 2 cows. You give one to your neighbour. Communism You have 2 cows. The government takes both and gives you milk. Fascism You have 2 cows. The government takes both and shoots you. Bureaucratic Statism You have 2 cows. The government...

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An Economist In Tehran

Posted by Niranjan Rajadhyaksha at 
The New Yorker has a profile of an Iranian free-market economist named Mohammad Tabibian. The entire story is behind a subscription firewall and I do not have access to it. But the abstract that is available on the New Yorker site is interesting enough. LETTER FROM TEHERAN about reformer and free-market economist Mohammad Tabibian. In the tumultuous...

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