John Maynard Keynes says economics can be useful in generating some insights. But it's not part of the decision making that people make in real life, he argues. And when economists are appointed to serious public policy positions they don't say ' maximized expected utility this morning using a model' He thinks we need to broaden our horizons and look at behavior rather than just models.
John Kay and Mervyn King talk about their book, Radical Uncertainty, with EconTalk host Russ Roberts. This is a wide-ranging discussion based on the book looking at rationality, decision-making under uncertainty, and the economists' view of the world.