This is an interesting video interview by CNBC of Harvard's Ken Rogoff and Tom Gloser of Thomson Reuters in Davos.
It is interesting because the message of both distinguished personalities evokes deeply contrasting views, even if they claim to represent different approaches (Mr. Rogoff-macro while Mr. Gloser-micro) in how they see the world.
Besides, CNBC's designated title "Economy to Crash if It Keeps Debt Appetite: Rogoff" seem to mislead, because Mr. Rogoff says it's gonna "get worse before it gets better" which hardly implies of a crash. Moreover, Mr. Rogoff consumed about only 5-10% of the total time interviewed, yet got the top billing for the video's title. If this is not a case of sensationalism, I don't know what is.
I say contrasting too, because while Mr. Rogoff spoke of difficult times ahead, Mr. Gloser sanguinely articulated on his ex-US "cautious" but manifold expansions, primarily on the "places that are growing", particularly the BRICs in order to "stay a step ahead".
For me, this exhibits the classic informational conflict between the interpretation of statistical aggregates against that of the information from what F. A. Hayek calls as the "man on the spot" or localized knowledge in ascertaining changes in the economy.
Another very important distinction is that while one operates in the realm of theories, the other votes with risk money. I wonder who among them would be right. Interesting indeed.
It is interesting because the message of both distinguished personalities evokes deeply contrasting views, even if they claim to represent different approaches (Mr. Rogoff-macro while Mr. Gloser-micro) in how they see the world.
Besides, CNBC's designated title "Economy to Crash if It Keeps Debt Appetite: Rogoff" seem to mislead, because Mr. Rogoff says it's gonna "get worse before it gets better" which hardly implies of a crash. Moreover, Mr. Rogoff consumed about only 5-10% of the total time interviewed, yet got the top billing for the video's title. If this is not a case of sensationalism, I don't know what is.
I say contrasting too, because while Mr. Rogoff spoke of difficult times ahead, Mr. Gloser sanguinely articulated on his ex-US "cautious" but manifold expansions, primarily on the "places that are growing", particularly the BRICs in order to "stay a step ahead".
For me, this exhibits the classic informational conflict between the interpretation of statistical aggregates against that of the information from what F. A. Hayek calls as the "man on the spot" or localized knowledge in ascertaining changes in the economy.
Another very important distinction is that while one operates in the realm of theories, the other votes with risk money. I wonder who among them would be right. Interesting indeed.
