Thursday, March 12, 2009

Dangerous Centrist……..

In the course of learning good economics person like me often handicapped by all left, right, and centrist… 

So let’s try to be no part of any “ist”. It does not mean that the difficulty of learning good economics is over. 

When we enter school we often preached “be honest, never be a rude to any one even to animal (some extent), always say truth, etc. 

These slogans slowly become never in any part of student life in Indian colleges and universities. 

The person who never seen the colleges and universities wall no doubt is in peril at the spicy politics of criminals but less of good men. 

Max Veber once wrote a piece in which he described quite interestingly “politics is vacation” often for unemployed youths! 

So no surprise the other part of a persons life is often illustrated in the newspapers, TV etc. No wonder there is a dangerous academic life for many satirist who never knew the full subject knowledge but somehow knew how to play the politics gamble in the inside four walls of “class room”. 

Lets see what one academician says (forget how dangerous he and his ideas. Paul Samuelson often credited for his classic textbook of Economics with “much gloom and doom”) about present financial crisis. He says “….famous Austrian, Friedrich Hayek, then resident in the UK, earned perpetual guilt for similar insistence on limiting any expansion of credit during the 1931 deflation. It is reported that, in a London seminar deep in the Depression, J.M. Keynes’ young associate, Richard Kahn, asked Hayek: “Do you mean that if I borrow a pound from you and spend it on consumption, I am making the depression worse?” Hayek replied: “Yes, and it is very complicated to explain why.” But it is easy to explain why Hayek’s reputation as a macroeconomist collapsed.” 

Mind you, he has not said about what caused the present crisis. 

It is relevant to cite from a banker turned economics journalist, in today’s ET titled as When practice doesn’t make perfect’. This is answer to Mr Paul dangerous centralist preach of one side economics.

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