Revolt of Economics students

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See Teaching Economics after the Crisis.  J-C Trichet: ECB President “As a policy-maker, I felt abandoned by conventional tools.” (2010).

This may be mostly about macro-economics, but reflects fundamental inadequacies in the underlying science that afflict micro-economics and have poisoned fundamental ideas in strategy. Even the most basic tools, such as the PQ demand-curve, are hopelessly unrealistic depictions of real-world mechanisms, and attempts to adapt them end up like trying to squeeze Cinderella’s ugly sisters’ foot into a dainty shoe. Standard economic models do not deal ...

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Strategy models help Boeing

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I see strong 2nd quarter profits at Boeing,  just after hearing their strategy VP explain their heavy use of strategy models. Their industry model led them not to cut production after a 2009 collapse in orders, in spite of screams from analysts that they should do so to cut costs. Reminds me Airbus used a similar model way back in 96 (also in link above) to spot that a massive jump in orders was fluff, and to ...

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