A sobering view
Many people think you can cure your problems and worries by looking on the bright side and thinking positively, but this article outlines why being an optimist isn’t as beneficial as we think and also that negative thinking may not be as bad. A dose of realistic pessimism can often be a good thing.
Michael Lewis’s latest book, The Undoing Project, about Kahneman and Tversky who kickstarted behavioural economics, claims their friendship changed the world . But this Prospect article says this claim is overblown. It would be nice if that were the case but it isn’t. It’s only barely begun to change the way we think about the world.
Nudged to death?
Behavioural economics isn’t dead – or not just yet, it seems. As Bloomberg writes, although there hasn’t been the flood of findings predicted 10 years ago, behavioural models are increasingly influencing macroeconomics. The dream of marrying psychology and economics might not come true but at least we might realise we’re not all that rational.