This is a guest contribution by Damien Hoffman, editor of the very popular Wall St Cheat Sheet blog.

This may sound like common sense to investors and traders, but most people - including policy makers - do not readily accept the flawed nature of economic models.

Thank goodness we have professor David Colander testifying to Congress in order to enlighten an otherwise dim room. Colander’s work at Middlebury College focuses on the incentives and work-product of economists. His work has become increasingly more important as economists have heavily influenced policy making in recent years.

In addition to exposing a few absurd underlying economic presuppositions such as “individuals behave with rational self-interest,” Colander is helping shift incentives for professional economists away from publishing toward engaging in more useful studies.

This is a guest contribution by Damien Hoffman, editor of the very popular Wall St Cheat Sheet blog.

This may sound like common sense to investors and traders, but most people - including policy makers - do not readily accept the flawed nature of economic models.

Thank goodness we have professor David Colander testifying to Congress in order to enlighten an otherwise dim room. Colander’s work at Middlebury College focuses on the incentives and work-product of economists. His work has become increasingly more important as economists have heavily influenced policy making in recent years.

In addition to exposing a few absurd underlying economic presuppositions such as “individuals behave with rational self-interest,” Colander is helping shift incentives for professional economists away from publishing toward engaging in more useful studies.