Opinion | Can economists and universities reinvent economics?

A few weeks ago, I had lunch with Sanjeev Sanyal, principal economic adviser to the government of India. Our conversation touched upon different topics, and ultimately found its way to a question that both of us find most intriguing: can the discipline of economics re-invent itself for today’s complex world, and can universities embrace a fresh approach to it? Even modern economic theory traces its origin back to Adam Smith’s magnum opus, An Inquiry Into The Nature And Causes Of The Wealth Of Nations, published 250 years ago. To pass through its hallowed gates, a rising economist must exhibit proficiency in understanding and applying economic models with great rigour, by producing peer-reviewed scholarly articles published in highly selective journals. In short, the complex real world, as we know it, is substantially different from the predictable theoretical world described by conventional economic models.