1. In your opinion, what has been the impact of the crisis on:(i) how the outside world perceives economists and economic research?(ii) how you perceive the value of economic research?
2. Do you think the economics profession deserves part of the blame forthe great financial crisis as some (even famous colleagues) would claim?
So I did some background reading, from revisiting the "famous" Krugman piece to the now infamous "Crisis? What crisis?" papers by Chari, Christiano, and Kehoe. The latter's abstract is worth reproducing:
Some economists, when faced with diatribes like Krugman's, sound a bit like General Buck Turgidson. When scolded by the President about the fact that despite the "human reliability program", an air force general ordered his wing of nuclear-armed B-52's to attack the Soviet Union, Turgidson says:
Well, I don't think it's quite fair to condemn the whole program because of a single slip-up, sir!Having said that, I think I will talk a bit about unreasonable expectations -- why the public thinks its a good way to measure the value of economics in terms of predictive power, and why that makes little sense.