Macroeconomists enjoy a certain celebrity status, even if a lot of it is negative. Of the academic economists (from both economics departments and business schools) listed as Annual Meeting participants at this year’s Davos, just 14% concentrate their research on microeconomics.
DSGE, IS/LM, OLG. If you are a follower of the dismal science, or have come across any news regarding economic modelling, these terms will be somewhat familiar to you. To the rest, they’re just acronyms.
Economics modelling is a funny thing. Instead of actually having specific laws, an all-encompassing model, or a grand unified theory, it has models which need to describe their specific purpose and characteristics through complicated names (and even weirder acronyms). Although not a natural science, economics could gain much by learning how scientists model the natural world.
This is the first part in a two-part series on the role of systems thinking in business solutions for sustainable development. Here is part 2. For most of us, it is rare to go through a single day without hearing the words “sustainability” or “green” applied to anything from Apple products to Zinfandels. The widespread use and the trendiness of these terms by businesses have evolved them into almost catch-all phrases that seem applicable to any sector. Nevertheless, the underlying ideas and needs are common.