The ongoing trend in economic environment including the recent recession may not be just a collapse in economies and financial markets but is pointer of question on great economic theories, which has jolted the economic thinking. The leading economists are not able to summarize the crises in the light of established theories and suggesting of change in economic thinking. “The economic profession appears to have been unaware of the long built up of current worldwide financial crises which have unfortunately been significantly underestimated in its dimensions and which are now being experienced. Perhaps the lack of understanding is due to a misdirection of research efforts in economics. We trace the deeper root of this failure to the professions insistence on constructing models that, by design disregard the key elements driving outcomes, in real world markets. The economic profession has failed in communicating the limitations, weaknesses and even danger of its preferred models to the public. This state of affairs makes clear the need for a major reorientation of focus in the research economists undertake, as well as for the establishment of an ethical code that would ask the economists to understand and communicate the limitations and potential misuse of their models”.
As a management institution, the development of the budding managers in all aspects related to business and economy is our aim. But it can only be achieved when there is a realization about our goals and targets and we are completely focused on it. I have quoted the above abstract to attract your attention to the aforesaid issue. There is an urgent need for changing the economic thinking. This change can be brought about by the younger generation. We strongly believe that you all have the requisite intelligence and knowledge to bring about the feasible changes. Imagine your names and your theories being quoted with the great economists. FMS-IRM has given you this food for thought and a thrust to this direction.
Best of Luck!!
Prof. Barbara Cangan
President, SIIRM Consortium