Economics was once viewed as the most valuable intellectual training for determining the health of the world’s financial system, now those truths are being challenged by hard to predict leaders and nations. After the Cold War, economics rose to the top of the sciences and was seen as a powerful force “that could make and unmake nations,” according to Fareed Zakaria in his essay, The End of Economics? So, what’s changed?
Fareed said, “modern-day economics had been built on certain assumptions: that countries, companies, and people seek to maximize their income above all else, that human beings are rational actors, and that the system works efficiently.” However, he concludes behavioral economics showed that markets, people, and even nations don’t always behave rationally, he says, “As we try to understand the world of the next three decades, we will desperately need economics but also political science, sociology, psychology, and perhaps even literature and philosophy.”
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