An Economic Way of Thinking

About the Topic

Whenever the prospect of recession approaches, economics attracts renewed attention.

Everyone seems to have an opinion. Academic and self-taught economists alike pronounce on social media; ten economists may offer eleven views.

This talk returns to what I consider economics’ central questions and distinctive ways of thinking.

The next time an economist makes a sweeping claim, you may be better able to identify the assumptions and form your own judgment.

Questions we may discuss include:

⁃ What does economics study?

⁃ Is the assumption of rational behavior realistic?

⁃ Do assumptions have to be realistic?

⁃ Supply and demand

⁃ Scale, scale, scale

⁃ The power of expectations: is there really a free lunch?

⁃ Why do economists keep getting predictions wrong?