In a recent editorial by Paul Krugman, he discussed the use of mathematics within economics and concluded that the role of mathematics is valuable but that there can be great work in economics with little or no math. It is my understanding that through his own experience and observation of other great minds, Keynes had a strong conviction that mathematical models are a crucial component to a viable economic principle/theory - a model is needed to complete a theory. Therefore, according to Keynes and your extensive study of his life, can economics exist (completely) without some form/level of mathematics?
By: John at: 15th September, 2009
Status:
Answered
Answer:
That is a great question, John. To be perfectly clear about what Krugman said in his 9/11/09 “post,” let me quote him: “Math in economics can be extremely useful. I should know! Most of my own work over the years has relied on sometimes finicky math. ... [In my research] I started with some vague ideas; it wasn’t until I’d managed to write down full models that the ideas came clear. After the math I was able to express most of those ideas in plain English, but it really took the math to get there, and you still can’t quite get it all without the equations.” But “good math” shouldn’t be equated with “good work.”
The simple answer to your question is no. Math aids complex economic analysis. In economics and all other scientific approaches, it is the initial assumptions that influence (some would say determine) the conclusions. The classical economic modelers assume perfect knowledge and perfect rationality and use these assumptions (and their mathematical equivalencies) to predict their real-world results.
Keynes, and his fan Krugman, believe in a much less perfect world, as do I. Keynes wrote in his General Theory (297) that the object of economic analysis “is not to provide a machine, or method of blind manipulation, which will furnish an infallible answer, but to provide ourselves with an organized and orderly method of thinking out particular problems....
Modern policy analysis that promotes thinking uses Keynes’ real-world precept that both reason and knowledge are imperfect, while math is perfect. Consequently, math is useful starting point for economists.
John, if you have any other questions with regard to Keynes, I’d be happy to answer them. jmr