What's the Use of Economics?

With the financial crisis continuing after five years, people are questioning why economics failed either to send an adequate early warning ahead of the crisis or to resolve it quickly. The gap between important real-world problems and the workhorse mathematical model-based economics being taught to students has become a chasm. Students continue to be taught as if not much has changed since the crisis, as there is no consensus about how to change the curriculum. Meanwhile, employer discontent with the knowledge and skills of their graduate economist recruits has been growing. This book examines what economists need to bring to their jobs, and the way in which education in universities could be improved to fit graduates better for the real world. It is based on an international conference in February 2012, sponsored by the UK Government Economic Service and the Bank of England, which brought employers and academics together. Three themes emerged: the narrow range of skills and knowledge demonstrated by graduates; the need for reform of the content of the courses they are taught; and the barriers to curriculum reform.While some issues remain unresolved, there was strong agreement on such key issues as the strengthening of economic history, the teaching of inductive as well as deductive reasoning, critical evaluation and communication skills, and a better alignment of lecturers' incentives with the needs of their students.

'Superb! Diane Coyle has catalysed what is long overdue: candid self-questioning by economists of a discipline that did not anticipate the crisis and has barely changed since despite its self-evident shortcomings. Some spectacularly good reads. Economics can't stay the same after this book.' - Will Hutton, Principal of Hertford College Oxford, Observer columnist and chair The Big Innovation Centre 'With outstanding essays from the likes of Andy Haldane, John Kay and Andrew Lo, this book should be read by anyone interested - or anxious - about what economists do and how economics is taught.' - Tim Harford, author of "The Undercover Economist" and "Adapt" 'This volume will set the agenda for the debate of the next decade by economists and policy makers trying to avoid another financial crisis. The self-critical chapters by top-tier economists and hands-on practitioners provide fascinating insights into what went wrong and how the economics profession should set about to reform itself.' - Dr DeAnne Julius CBE, Chairman of Chatham House and former member of the Bank of England's Monetary Policy Committee

Diane Coyle, is a freelance economist, and a former advisor to the UK Treasury. She is a member of the UK Competition Commission and Vice Chairman of the BBC Trust, the governing body of the British Broadcasting Corporation