When they taught me economics, they divided micro and macro economics. For me I did not understand. Yet they taught me scarcity, opportunity cost and choice. These did not make sense. They left out the environment under which decisions are made because they assumed away transactions costs. For they also were taught using neoclassical written books. These books had great influence all over the world since the times of Adam smith who talked about the invisible hand. For neoclassical minds, politics, information asymmetries and transactions costs did not matter because what seemed important was the price of the product but the price which they did not appreciate. What is price? Yes what is price. They believed prices were instruments of resource allocation yet they were wrong. They made me believe that prices were important. Under this same thinking, they influenced Africa to open up its markets because prices were wrong, be they foreign exchange prices, product prices, commodity prices etc and Africa was expected to develop but Africa did not develop. Then what went wrong. Let see what I teach my students.
Posted on: Sat, 24 Aug 2013 21:58:22 +0000
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