It’s impossible to avoid misjudgements in life or to get all one’s predictions right. But should economists get caught out quite so often. Nicholas Gruen looks at Paul Krugman’s recent accounting for ‘what we missed about globalisation’ and wonders why we didn’t foresee a little more.
Paul Krugman is honest and self-critical. So he’s up for identifying what economists missed about globalisation – including himself. Of course, everyone’s wise in hindsight. Still, Krugman keeps reporting that economists ignored things that were … kind of obvious.
For one person to miss something is a misfortune. But a whole profession doing it, again and again, seems like carelessness.