The Covid-19 pandemic has exposed the already deepening crises facing the world.
Traditional economic theories did not provide the solutions needed to address these problems as it is limited to cost-benefit analysis and mathematical models.
Post Covid-19, economists should focus on precautionary action that can help the world cope with unforeseen disasters.
Richard Murphy, professor of international political economy at the University of London, shared an article on how orthodox economics is proving ineffective during the current Covid-19 pandemic.
The article notes that the world was already facing a number of crises before the pandemic including climate change, inequality and robots replacing humans.
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Conventional economic theories have not been helpful in addressing these problems as solutions were often disregarded as being unaffordable and counter-productive.
The article notes that the traditional cost-benefit way of decision making should be avoided and a bottom-up approach to economics must be adopted.