Friday, February 20, 2009

An interview with George Akerlof

In a short interview with George Akerlof in the Atlantic:
Actually, if you don't take psychology into account, I think it's fairly hard to give a model of the economy that explains a great deal of the economic fluctuations that are going on.
There have been a number of books looking at the psychology of economic behaviour recently but Akerlof's new one, Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism (with Robert Shiller), is the first to look at the role of psychology in macroeconomics.

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