This has got to be one of the best interviews on the discipline of economics that I’ve read in a while, and its with none other than Dani Rodrik – a trailblazer in empirical economics and author of the new book ‘Economics Rules: The Rights and Wrongs of the Dismal Science‘.
My favourite bit from the interview is about how economists need to get over dogma, getting real the usefulness of theories, and recognising that its all happening in an evolving space and is highly context dependent,
Too often economists debate a policy question as if one or the other theory has to be universally correct. Is the Keynesian or the Classical model right? In fact, which model works better depends on setting and context. Only empirical diagnostics can help us know which works better at any given time — and that is more of a craft than a science, certainly when it is done in real time. If we economists understood this, it would make us more humble, less dogmatic, and more syncretic.