In the aftermath of the global financial crisis, economics seems anything but a science. Dani Rodrik, Professor of International Political Economy at Harvard’s Kennedy School of Government, takes a close look at economics to examine when it falls short and when it works. He argues that it can be a powerful tool to improve the world – but only when economists abandon universal theories and focus on getting the context right.
Models are the tools that make economics a science, but too often economists behave as if their discipline is about the search for the model that applies everywhere and at all times. Instead, diverse situations call for different models, and economists should pay more attention to the historical and institutional context. If they do, using the right model at the right time can deliver valuable new insights about social reality and public policy.
Chaired by Chris Giles (Economics Editor, Financial Times).