Kaushik Basu: Why political gutfeel on economic policy is no substitute for rigorous analysis
· livemint.com
Economics may sound like common sense at times, but that mustn’t tempt countries to brush aside expertise in this discipline. From India’s 2016 demonetization to America’s recent tariffs, several cautionary tales exist of instinctive governance going wrong.
To understand why, imagine yourself as one of the bidders. There is no benefit in bidding more than the item is worth to you; if someone else bids just below yo...