From Astrology to Astronomy ???

It would be too flattering to economics to compare the paradigm shift that lies ahead to the one that occurred in physics a century ago. Economics is closer today to astronomy in 1543, when Copernicus realized that the earth revolved around the sun. The academic economics of the past twenty years has been comparable to pre-Copernican astronomy, with its mysterious heavenly cogs, epicycles, and wheels within wheels.Today's economists will fight for their irrational rationality as fiercely as the pre-Copernican astrologers defended their epicycles and star signs.

   Max Planck observed, in the context of the revolution in physics that occurred one hundred years ago with the discovery of relativity and quantum mechanics, that "science progresses one funeral at a time." The achievements of modern economics are too meager - and its ideological importance is too great - to allow such slow progress. Either economics will reform itself quickly or the funeral will be for the discipline as a whole.

Hat tip ~ Anatole Kaletsky, CAPITALISM 4.0

The Next Level

New ways of thinking about economics will have to be developed, in parallel with the evolution of a new capitalist system. For this to happen, however, the dominant research programs of the 1979 - 2009 era will have to be acknowledged as failures, or at least to be discarded as no longer relevant. Instead of using oversimplified assumptions to create mathematical models that bear no relation to real events, economists will have to reopen their subject to a much wider diversity of analytical approaches. They will have to draw insights from political science ( i.e. The Origins of Political Order ), Sociology, and Anthropology. And they will have to apply the methods of historians, management theorists ( Stakeholder Theory, Modularity ) and psychologists, as well as mathematicians and statisticians. As economists do this, the institutional structures ( institutions) and intellectual outlines (thinking) of Capitalism 4.0 will gradually take shape.

If Capitalism is to Survive...

In short, the economy of the future will be explicitly a mixed economy, in the sense that both the private and public sectors will play an important role. And it will be an adaptive economy, where the rules of economic engagement, including the relationships between the government and private markets, will be subject to change.

The Future of Economics

"Economics today is a discipline that must either die or undergo a paradigm shift - to make itself both more broadminded and more modest. It must broaden its horizons to recognize the insights of other social sciences and historical studies and it must return to its roots. Smith, Keynes, Hayek, Schumpeter, and all the other truly great economists were interested in economic reality. They studied real human behavior in markets that actually existed, rather than making assumptions about disembodied representative agents and desocialized perfect markets of a kind that could not possibly approximate the real world."  (185)

Hat Tip ~ Capitalism 4.0 , Anatole Kaletsky

Future of Finance...

Short Termism vs Long Term performance...

The Future of Finance...

Finance has a Role to Play....
if all you are interested in is going to WALL Street to make a lot of Money - Modern Finance is Your Field

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if you want a better understanding of the World of Finance... To do WELL by doing GOOD...to make the World a Better Place...Then, Modular-Finance is Your Field...

Look Deep into Nature, and then you will understand everything better...

~ Albert Einstein

Modern Finance - An outdated technology - ( theory)