For Economists, Another Think Coming

With the economic downturn clobbering us, we all know the world is in need of some revised economic principles. So it’s a breath of fresh air to hear about a new venture by a group of innovative economists, businesspeople and policymakers. The Institute for New Economic Thinking (INET) has opened its door, according to a press release.

The institute was established with a $50 million pledge ($5 million per year for 10 years) from billionaire George Soros, who has long been skeptical of classical economic theory. The founding members include four Nobel laureates — George Akerlof, Sir James Mirrlees, A. Michael Spence and Joseph E. Stiglitz — and a raft of other high-profile people.

Serving as a think tank on all things economic, the institute will disburse research grants, organize symposia and publish a journal. The first symposium will occur at King's College, Cambridge University, in April of next year.

In an essay that addressed the new venture, Stiglitz wrote that the economic crisis is making economists take a long, hard look at their ideas: “If science is defined by its ability to forecast the future, the failure of much of the economics profession to see the crisis coming should be a cause of great concern."

Photo courtesy of Cushing Memorial Library and Archives, Texas A&M, via Flickr