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Economics Rules: The Rights and Wrongs of the Dismal Science, by Dani Rodrik
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Rethinking economics, from the inside out.
In the wake of the financial crisis and the Great Recession, economics seems anything but a science. In this sharp, masterfully argued book, Dani Rodrik, a leading critic from within, takes a close look at economics to examine when it falls short and when it works, to give a surprisingly upbeat account of the discipline.
Drawing on the history of the field and his deep experience as a practitioner, Rodrik argues that economics can be a powerful tool that improves the world—but only when economists abandon universal theories and focus on getting the context right. Economics Rules argues that the discipline's much-derided mathematical models are its true strength. Models are the tools that make economics a science.
Too often, however, economists mistake a model for the model that applies everywhere and at all times. In six chapters that trace his discipline from Adam Smith to present-day work on globalization, Rodrik shows how diverse situations call for different models. Each model tells a partial story about how the world works. These stories offer wide-ranging, and sometimes contradictory, lessons—just as children’s fables offer diverse morals.
Whether the question concerns the rise of global inequality, the consequences of free trade, or the value of deficit spending, Rodrik explains how using the right models can deliver valuable new insights about social reality and public policy. Beyond the science, economics requires the craft to apply suitable models to the context.
The 2008 collapse of Lehman Brothers challenged many economists' deepest assumptions about free markets. Rodrik reveals that economists' model toolkit is much richer than these free-market models. With pragmatic model selection, economists can develop successful antipoverty programs in Mexico, growth strategies in Africa, and intelligent remedies for domestic inequality.
At once a forceful critique and defense of the discipline, Economics Rules charts a path toward a more humble but more effective science.
- Sales Rank: #334844 in eBooks
- Published on: 2015-10-13
- Released on: 2015-10-13
- Format: Kindle eBook
Review
“Full of good insights. . . . If you’re at all interested in economics you’ll want to read it.” (Clive Crook - BloombergView)
“Rodrik’s plea is for economics to be practiced with a bit more humility both by those who extol free markets and those who would tame them.” (Steven Pearlstein - Washington Post)
“The best economists make the best methodologists, and Dani Rodrik is both. His Economics Rules is the single best source for explaining the strengths and weaknesses of economics to an outside audience.” (Tyler Cowen, George Mason University, author of The Great Stagnation)
“In Economics Rules, enjoyment enhances learning, with lessons for economists and non-economists alike―indeed, ten commandments for each. The book is a page-turner with every page carrying an important and memorable take-away.” (Margaret Levi, director, Center for Advanced Study in the Behavioral Sciences, Stanford University)
About the Author
Dani Rodrik, a prize-winning economist, is the Ford Foundation Professor of International Political Economy at Harvard’s John F. Kennedy School of Government and the author of The Globalization Paradox.
Most helpful customer reviews
0 of 0 people found the following review helpful.
A good book about the actual role of micro-economics.
By Edoardo Angeloni
The author here examines important questions, as about the actuality of the game theory and the its capacity of prediction. The last role looks like less important than some years ago, but Rodrik retains that for partial aspects it is still possible to construct the old back-ground. It should be avoided a general vision as that of general equilibrium, so we must accept at least the Smith philosophy. The result is that the game theory offers today an important language for several questions, but for example some questions, as the asymmetric information, are correlated to few problems, they aren't general keys for the life of every day.
0 of 0 people found the following review helpful.
A great book!
By Sergio M. Martin
I liked the simple and direct way of explaining a difficult subject: what economists do and how they do it. Also, I enjoyed the illustration of the diversity within the profession.
I recommend the book to anybody interested in understanding the thinking process that goes into economics and, again, the diverse angles involved in it.
The five stars are deserved for clarity on a deep and complex subject, as well as for a well written and documented research. I hope it will have many readers, but especially economists!
0 of 0 people found the following review helpful.
Excellent book on the strengths and limitations of economics
By Amazon Customer
Honest assessment of economics as a social science, defense of economic modeling, good read for both economists and non economists
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