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.