Mon, 14 Oct 2013 00:00:00 GMT
Science may help to convey
The world that we live in today,
To predict and construe
And hypothesize, too,
In a rational, testable way.
Economists have their devices
To model employment and prices
And cloak their decrees in
The mantle of reason;
The question is: if that suffices.
The label of “science” may serve
To misname economists’ oeuvre,
When considering deeply
Their failure to keep the
Investors ahead of the curve.
It’s been said that the econ profession
Made an unscientific impression
When the models they picked
Could rarely predict
How soon we will have a recession.
An incontrovertible fact is
That theory may falter in practice
When we try to project
And falsely expect
That people are rational actors.
If we try not to place our reliance
That with logic man stays in compliance,
It might be allowed
By the PhD crowd:
Economics, though dismal, is science.
Greetings to all those making the trek back to college or graduate school this weekend, as I am with our college sophomore today (go Greyhounds!). Here is a special shout-out to those of you returning to study the Dismal Science, which has recently come under attack in a New York Times opinion piece for a surplus of the former and a surfeit of the latter. Though highly regarded economists arose in honorable and forthright defense of the profession, it seemed as though the gates had been opened for Wall Street skeptics to voice long-held doubts.
Take heart, students, and be not troubled by such thoughts. Remember though, that while the science of economics may labor to measure and model how prices and employment have done and will do, the philosophy of economics may not shrink from the debate over what they should do. While studying social science, consider toward what sort of society you are working, and remember that all of those economic actors are people.
Is Economics A Science?
Sun, 01 Sep 2013 14:39:00 GMT
Mon, 25 Mar 2013 00:00:00 GMT
Visual Presentation For Humorous Effect
Thu, 14 Mar 2013 00:45:00 GMT
The Federal Reserve in secret conclave ponders
Means to cure the nation’s cloudy state o’ercast
By stormy speculation. To-morrow morning’s news proclaims
The fury of their warning. Such dismal stuff will shake
The Wall Street world to marrow of its gambling bones;
These lines come from a 1929 play, Shakespeare on Wall Street, a mash-up of famous Shakespearean characters from various plays set to the story of the stock market crisis just then in motion. Written by a Harvard Law professor, Edward Henry Warren, the play features Shakespeare as a New York investor and his three sons—Hamlet, the bond salesman; Macbeth, a timid investor; and Falstaff, an anti-prohibitionist. The opening act parallels Shakespeare’s Macbeth, but with a twist: the three witches meet up in New Jersey. When Macbeth encounters the witches, he is willing to offer them as much as a golden eagle for their investment tips. A few scenes later, Polonius mentions that Macbeth has asked him to contact the Fed for assistance.
The Bard has been a source of inspiration to many at the Federal Reserve; Shakespearean lines pop up in various speeches and papers. During a January 2012 speech, Federal Reserve Governor Sarah Raskin quoted Shakespeare in emphasizing the importance of regulatory enforcement. Richard Fisher, the Harvard-educated president of the Dallas Fed, mentioned lines from Henry IV in a speech on monetary policy. A few years earlier, then-Governor Kevin Warsh opened his speech with a short Shakespearean soundbite. Chairman Ben Bernanke paraphrased the Bard in a commencement speech he gave at MIT. It’s also possible that Governor Elizabeth Duke may have had a Shakespearean role or two at the Playmaker Theater while earning a degree in dramatic art from the University of North Carolina at Chapel Hill.
A Minneapolis Fed author quoted from All’s Well That Ends Well to open an article about the 2011 floods that affected the Dakotas and Montana. And at least two Fed papers have had a Shakespeare-inspired title or theme.
How many others can you find? To look for your favorite quotation from Shakespeare (or any phrase of interest) appearing in other Fed publications, you can use this search tool.
And in case you still doubt the applicability of Shakespeare to economic and financial issues, find out what happens when the doleful poet meets the dismal economist.
The views expressed in this post are those of the author and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the author.
Mary Tao is a research librarian in the Federal Reserve Bank of New York’s Research and Statistics Group.
Historical Echoes: Neither a Lender nor a Borrower Be, or When the Bard Met the Fed
Fri, 08 Feb 2013 12:00:00 GMT