David Miles: 'There is No Crisis in Economics'
Writing in the Financial Times, Professor David Miles disagrees with former Bank of England Monetary Policy Committee colleague Andy Haldane to suggest this no crisis in economics. In reference to the 2007-8 financial crisis Professor Miles argues that ‘any criticism of “economics” that rests on its failure to predict the crisis is no more plausible than the idea that statistical theory needs to be rewritten because mathematicians have a poor record at predicting winning lottery ticket numbers.’
The article goes on to suggest that ‘economics textbooks have for decades devoted massively more pages to analysis of market failures and fluctuations in economies than to showing that market outcomes can be efficient and growth stable’ citing the winners of the Nobel Economics prize in the last 50 years whose work explored why ‘free market outcomes can sometimes generate poor results’.
Professor Miles is Professor of Financial Economics at Imperial College Business School and has held prestigious committee positions at the Bank of England, HM Treasury, the Institute for Fiscal Studies, Welsh Government and was a member of the REF2014 Economics panel.
Read the full article on the Financial Times website.