Posts Tagged ‘profile’

Nick Rowe, exemplary professor of economics

Tuesday, December 25th, 2018

Carleton University professor Nick Rowe received a well-deserved tribute, on his retirement from teaching, in The Economist magazine. I was fortunate to have known him as a colleague, but regret that I never had the opportunity to enroll in one of his macroeconomics courses. Sadly for me, he completed his PhD in 1985, long after I did. Current and future generations of economists will also miss the opportunity of learning from him. But all of us can continue to benefit from reading his many posts online at Worthwhile Canadian Initiative (WCI).

Professors may find themselves ill-prepared for the macro classroom. To become academics they had to answer erudite questions posed by more senior members of the discipline. To become good teachers of introductory macro, they have to give clear answers to muddled students. That requires an intuitive feel for the subject. It is not enough to crank through the equations.

Indeed, Mr Rowe attributes part of his success as a teacher to his shortcomings as a mathematician. He quotes Joan Robinson, another clear expositor of macroeconomics: “I never learned maths, so I had to think.” Because the answers did not leap out at him from the equations, he had to dwell on the economic behaviour underneath the algebra.

Anonymous, “Mangonomics“, The Economist, 9 August 2018.

Albert Hirschman and Cardiff Garcia

Monday, December 4th, 2017

Cardiff Garcia (born 1979 to Cuban-American parents) is a great fan of German-American political economist Albert Hirschman (1915-2012). I am also a fan of Hirschman, which is why I urge you to listen to a series of three interviews of the biographer of Hirschman that Cardiff posted before moving from FT’s Alphachat to NPR’s Planet Money podcast. It is possible to download these podcasts without cost, directly from the links below, from iTunes, or from wherever you get your podcasts. Enjoy! (more…)

who are the best teachers?

Sunday, July 16th, 2017

Most certainly, not geniuses in their field. Harvard economist Larry Summers, for example, tells this story about his Nobel laureate uncle, Kenneth Arrow (1921-2017).

Kenneth had a real problem as a teacher, which is that he didn’t really think like the rest of us. From his Olympian perspective, it was very difficult to understand what students did and did not understand. ….

There was a movement in the Harvard Economics Department in the early ‘70s (this is an experiment that has not been repeated as best I know in the last 45 years) to assure that faculty rather than graduate students would teach introductory economics to college freshmen. This was accomplished in two ways: one is assistant professors were required to teach introductory economics, and the other is that generous souls were prevailed on. Kenneth was a generous soul and he was prevailed on. So, for a full year Kenneth was the teaching fellow for 24 fortunate freshmen. He reported afterwards, and I fear data confirms this, that he had not been quite able to find their level, and of 24 teaching fellows that year, he had been ranked 13th. The experiment was not repeated.

Larry Summers, “Kenneth Arrow Commemoration at the Institute for Advanced Studies”, Tel Aviv, Jerusalem, 5 July 2017.

Kenneth Arrow Commemoration at the Institute for Advanced Studies

Lawrence Summers (born 1954) has had a long and distinguished career in government, the World Bank and Harvard University. He is also a nephew of Paul Samuelson (1915-2009), another Nobel Laureate. All three economists taught at Harvard University.

Kenneth Arrow was truly remarkable. His knowledge extended beyond economics to many fields. Larry Summers refers to him as a “gentle genius” who will be missed by the world. I, for one, miss him already, even though I knew him only through his writings.


remembering economist William Baumol

Monday, May 22nd, 2017

British economist Diane Coyle (born 1961) praises the work of William Baumol, who passed away on the 4th of May, aged 95, and laments that they no longer make economists like him. (more…)

Kenneth Arrow: a gentle genius

Sunday, February 26th, 2017

Kenneth Arrow, one of the greatest economists of the past century, died last week. His nephew, Larry Summers, wrote a eulogy that was published in the Wall Street Journal. Here is an excerpt from it, followed by an ungated link to the full eulogy. (more…)

Ed Thorp at lunch with the FT

Saturday, February 4th, 2017

This is a superb “Lunch with the FT”. John Authers, FT Senior Investment Commentator, interviews Ed Thorp, the famous mathematician, hedge fund manager and blackjack player. Here are excerpts from an exceptionally long, informative and entertaining column. Click on the link below to read the full column (highly recommended). (more…)

Thomas Schelling, 1921-2016

Monday, December 19th, 2016

The American economist Thomas Schelling, who died last week, was a great man and a great economist. He will be remembered for many contributions, but for me his most important was help in prevention of nuclear war between the USA and the USSR.

Though not a pacifist, Schelling was a peacemaker. Tim Harford, ‘undercover economist’ for the Financial Times, highlights this aspect of his life in an obituary he wrote for last weekend’s newspaper.

Schelling used academia as a vantage point from which to advise the administrations of Presidents Kennedy, Johnson and Nixon. He was at Harvard University for 31 years, and said of one role there that it had given him a decade of “freedom to write and to consult, and I spent much of my time, especially during the summer, doing advisory work for the government.”

That advisory work drew on one discipline in particular.

Game theory had been dreamt up by the mathematician John von Neumann, as an attempt to model in mathematical terms human interactions from poker through to strikes or cartels.

The Hungarian-born von Neumann was a hawk (“If you say why not bomb [the Soviets] tomorrow, I say why not today?”) but Schelling took game theory in a new direction. He emphasised that even the most implacable foes could find areas of common interest — most obviously, during the Cold War, the necessity of avoiding mutual annihilation.

To this end, in the late 1950s and the 1960s, Schelling’s advisory work and his publications focused on issues of effective deterrence, communication, and the strategic limitation of arms. He was a consultant for Stanley Kubrick’s 1964 film Dr Strangelove, a nuclear annihilation comedy which introduces a “doomsday device”. The device is the ultimate deterrent: it will be triggered automatically in the case of war. Alas, it’s a secret, which limits the deterrent effect. ….

Schelling ended his advisory work with a letter opposing the 1970 US military campaign in Cambodia. ….

His father was in the US Navy, but despite Thomas Schelling’s crew cut, square jaw and family history, he did not fight in the war. For medical reasons, the military would not accept him. Instead he studied economics at the University of California, Berkeley and earned his PhD at Harvard. After a spell working on the Marshall Plan, he taught at Yale, Harvard and finally the University of Maryland.

Tim Harford, “Thomas Schelling, economist, 1921-2016“, Financial Times, 17 December 2016 (metered paywall).

Addition information can be found in Harford’s interview of Thomas Schelling, which took place shortly after Schelling won the 2005 Nobel Prize in economics.

Though he spent most of his life teaching economics at Harvard, he [Thomas Schelling] also lectured young officers on military strategy at the United States War College. The Kennedy administration was packed with intellectuals fresh from Schelling’s seminars, including McGeorge Bundy, national security adviser to Kennedy and Lyndon Johnson; Walt Rostow, Bundy’s deputy, and John McNaughton, who became a close adviser to defense secretary Robert McNamara.

Through these men, Schelling helped to create a taboo against the use of nuclear weapons. Eisenhower’s administration had argued that such weapons were no different to any others, but Schelling thought otherwise, and the Kennedy administration agreed.

Schelling stopped advising the government when the US invaded Cambodia in 1970. He led a team of a dozen colleagues to see Henry Kissinger, Nixon’s national security adviser, to resign en masse from their informal advisory positions. “We thought about it the way a lot of people think about Iraq now,” he says, “that there was subterfuge, there was misuse or manipulation of intelligence information.”

Tim Harford, “Lunch with the FT: The game of life“, Financial Times, 17 December 2005 (subscribers only).

Blessed are the peacemakers: for they shall be called the children of God. Matthew 5:9. Thomas Schelling, RIP.

Hayek’s political philosophy

Saturday, December 17th, 2016

Here my second (and final) blog on Nicholas Wapshott’s short book Keynes Hayek: The Clash that Defined Modern Economics (Norton, 2011). Despite the title, it is more a book of history, biography and politics than it is of economics.

The last chapter, for me, was the most rewarding. Here are extracts, from pp. 290-291, that concisely describe the political philosophy of Austrian economist Friedrich Hayek (1899-1992). (more…)

Friedrich Hayek and John Maynard Keynes

Saturday, December 17th, 2016

I just finished reading Nicholas Wapshott’s Keynes Hayek: The Clash that Defined Modern Economics (Norton, 2011). Herbert Gintis and Greg Ransom, two American economists whom I admire, wrote scathing reviews of the book at In contrast, I enjoyed the book, especially the parts dealing with the life and personality of Hayek. The book is an easy, quick read (Gintis wrote that it is akin to reading an article in People magazine!), but that is all the more reason to read it. Don’t purchase it for reference, however. Borrow a copy from a public library.

Nicholas Wapshott (born 1952) is a British journalist and writer who has a degree in politics from the University of York. Cardiff Garcia recently interviewed him for an Alphaville podcast.

What to me was most valuable is the attention that Wapshott pays to differences in the personalities of Hayek and Keynes. The differences are, indeed, quite striking. Here are a few passages from the book that caught my attention. I am more familiar with Keynes than with Hayek so, for this reason, ignore Wapshott’s many comments on the personality of Keynes. (more…)

Michael Lewis on Donald Trump

Friday, December 9th, 2016

Financial journalist Michael Lewis (born 1960) is author of numerous bestselling books, including Liar’s Poker (1989) and The Big Short (2010).

Just before Donald Trump’s electoral victory, Lewis was adding finishing touches to his latest book, The Undoing Project: A Friendship that Changed Our Minds (Norton, 2016). The 368-page volume is an homage to contributions to behavioural economics of two Isreli psychologists: Danny Kahneman (born 1934) and the late Amos Tversky (1937-1996).

Gary Silverman, the FT’s US national editor, recently caught up with Lewis.

“Every which way, Trump is exploiting the faulty mechanisms in people’s minds,” Lewis says over lunch at César, a restaurant in his adopted home town of Berkeley, California. “It feels like we are in a world where, to me, some meaningful part of the electorate is beyond reasoning with — beyond fact, anti-science. All the mental faculties that lead to human progress, they are opposed to.” ….

“I think of this as echoing of the 2008 financial crisis,” he says. “The marketplace for politicians just did something as weird as the marketplace for securities did ….”

Given their histories, Lewis makes a natural critic of the president-elect. Apart from having two ex-wives apiece, as Lewis jokes, he and Trump have little in common. Lewis made his name as a writer with an account of 1980s capitalist excess — Liar’s Poker, a memoir of his stint as a young bond salesman at investment bank Salomon Brothers. Trump, meanwhile, was an unapologetic poster child for the era — a property developer and casino owner who put his name on a book that described his deals as art. ….

One of the reasons that Lewis finds Trump so worrisome is that he appears so resistant to criticism. “He seems to think his own impulses are ingenious, even when they are fraudulent, idiotic or stupid. He tells himself a story that ‘I won, I am a success,’?” says Lewis. “He really is as fallible as the stupidest American citizen.”

Trump, in other words, is one of us — and that’s a problem.

“We are hard-wired to stereotype,” Lewis says. “When you are fighting racism or bigotry of any sort, or stereotyping of any sort, you are in combat with the way the mind works. You are, in a weird way, in the world where you are trying to overwhelm impulses. It’s so hard to get rid of it. This is how people think.”

Gary Silverman, “American psyche: Michael Lewis on the triumph of irrational thinking“, Financial Times, 9 December 2016 (metered paywall).

There is much more in Mr Silverman’s full column, which TdJ highly recommends.