@INET-BW: Discipline and punish

Ken Rogoff and Larry Summers were on the program today at Bretton Woods, and they stole the show. Both are Harvard professors, both have been in and out of policy making, both are intellectual leaders of the economics profession. On any criteria, these are not men of “new economic thinking”. Rogoff of his own initiative, Summers pressed towards it, had to defend the state of economics teaching and research.

Two unlikely responses were given, and even more unlikely, they overlapped (when Rogoff spoke Summers was not in attendance).

1. The first was to describe the failing of economics as a subject of “sociology”. As economists, and practitioners, both men were baffled by how young people in the profession are more interested in formal puzzles and define research as model building taking any empirical work as distraction. Both men confessed they were the same when they were starting. Unfortunately, no sociologist was in the audience, however…

2. The other response, more interesting because of its bizarre possibilities, saw Rogoff and Summers defending rational expectations models and efficient market hypothesis as an integral part of economics education and research because both provide “discipline.” No one followed up asking what discipline meant.

The panoptic suggestion hints that economists have a bit of the sociologist in them after all…