Commentary on economics - Need to closely observe

"Catch a parrot and teach him to say, 'supply and demand', and you have an excellent economist." Irving Fisher, 1907. 

If economists wished to study the horse, they wouldn't go and look at a horse. They'd sit in their studies and say to themselves, "what would I do if I were a horse?" -  attributed to Ely Devons by Ronald Coase. 

These are two phrases that throw shade on economists. Yes, if you can get an economist to focus on supply and demand he will get most of any problem right. Of course, the problem is that defining supply and demand is harder than you think. It is more than words.

Ronald Coase is still under appreciated by most economists and those in business. He is not easy to understand but answering problems of contracting, institutional arrangements, and transaction costs are critical to understanding why and how financial markets work. The only way to understand the economy is to go out and observe what consumers and businesses do. You can start with theory, but better to first just look and see.