The Economic Nobel - II

Social sciences approach to tackling dynamic problems might be a vicious cycle.

Almost a decade back on Dec 10, 1999, Professor Torsten Persson said “The advancement of science frequently relies on new methods that allow us to approach questions no one has been able to answer in the past. Scientific breakthroughs also occur when creative researchers ask new questions that no one was imaginative enough to formulate in the past. The ability to pose new questions is perhaps particularly important in economics and other social sciences. Society undergoes constant transformation, due to changed institutions, behavior and expectations. In other words, the social sciences necessarily attack moving targets”.

Coming to look at it, the problem case is so dynamic that we have spent more than 250 years analyzing problems and offering solutions.  A few of the last 50 years Nobel Prize winning solutions are either already challenged or are counter arguments to answers offered  more than a 100 years ago.

Problems, solutions, new problems

1999 winner Robert A. Mundell formulated dynamic models to deal with the economy’s adjustment over time. He examined ways in which monetary and fiscal policy can be decentralized. He asked questions like how might instability in the economy be avoided over time? Mundell offered a solution to currency regime, which first came true as Bretton Woods failed. Now in the current context of currency wars it seems we have a bigger problem than the one already addressed by the social scientist in 1960.

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One Response to “The Economic Nobel - II”

  1. Yale Hirsch says:

    Would appreciate knowing from where you got the photo of me in your http://timetriads.com/article/125
    Thanks
    Yale Hirsch

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