Unraveling Economic Realities: Navigating Theories into Solutions

In a world beset by challenges like unemployment, poverty, and environmental degradation, economic theories emerge as guiding lights, illuminating pathways towards pragmatic solutions. From dissecting consumer behaviors to unraveling the intricacies of government policies, economics serves as a linchpin in understanding and addressing real-world complexities. Let's delve deeper into the dynamics of economic theories and their profound implications on shaping the world with Pushkarni Panchamukhi.

Pushkarni Panchamukhi is the Associate Dean at the School of Economics, RV University. She has done her PhD in the area of Economics of Education as a Reserve Bank of India Senior Research fellow from the University of Mumbai. She also holds the position of Executive Director for the Centre for Research in Education Studies and Training (CREST), a research centre based in RV University. 

Q1. Can you elaborate on your understanding of economic theories and their application in real-world scenarios?

Economics strives to understand and solve the real-world problems such as unemployment, poverty and inequality, the effects of inflation on consumer and producer behaviour, the welfare implications of government policies such tax and subsidies, environmental degradation and sustainable development.  

Building the foundations from the very basic principles of consumer and firm behaviour, economic theories aim at bringing in complex situations of the real world and providing optimal solutions. Although economic theories begin with many assumptions, eventually they build models to analyse the working of the real world through systematic relaxation of these assumptions, and bring in more and more complexity into the model reflecting the real-world scenarios through application of economic tools and logic.  

Q2. How do you perceive the role of economists in addressing contemporary global challenges such as climate change and income inequality?

Like I mentioned in my answer to the previous question, climate change and income inequality are real problems, and especially in the context of developing economies they become very relevant and pressing. Internationally and within India, economists are working towards providing alternative ways to deal with these challenges.

Climate change has spurred a lot of research by economists and a number of studies have emerged since the 1990’s on the relationship between weather and economic outcomes, attempting to forecast the economic implications of climate change. Senior economist and Nobel laureate, William Nordhaus has made significant contribution in this area.

Poverty, income inequality and development have been favourite areas of research in Economics.  Nobel laureates like Amartya Sen, Angus Deaton, Abhijeet Banerjee and Esther Buffalo (also called as ‘Poverty Fighters’!) have brought Development Economics and poverty studies into the forefront.  

Q3. what is the future of Economics?

Economics as a discipline provides the bedrock for all major policies. Economic theories have wide applications in various fields and inform other disciplines such as law, business and politics. At the same time Economics does not work in isolation; the future of the discipline lies in an interdisciplinary approach. Moreover, as the real-world problems are increasingly complex and faced with huge uncertainty, economics can offer possible solutions to these pressing issues through models and strong economic reasoning.   

Q4. How do you stay updated with the latest trends and developments in the field of economics?

Reading newspapers like Economic Times and Financial Express are very good ways of keeping up with the latest in the field. I highly recommend listening to podcasts by senior economists on platforms such as The Economist or IMF Podcasts. Of course, building the right network with people engaged in core research in Economics also helps to know the areas of ongoing research.  

Q5. In what ways do you believe studying economics at RV University will contribute to personal and professional growth?

As a part of a very vibrant campus at RV University, the School of Economics offers a holistic education that creates critical thinkers with a strong disciplinary understanding. As we launch our B.Sc (Hons.) and M.Sc programmes in Economics, we are excited to offer students a specialization in Data Analytics and Development Studies & Public Policy at the undergraduate level and Data Analytics, financial Economics or Development Studies & Public Policy at the postgraduate level.  Cognizant of India’s socio-economic position globally, the School of Economics stimulates an environment where students inquire into the real issues of development and gain insights through research, projects and self-study to stimulate their critical and analytical abilities to become independent thinkers and practitioners. With regular internship and capstone projects, as well as research dissertations, you get sound training to face placement interviews or present your research at national and international conferences. The most unique feature of studying Economics at RV University is the interdisciplinary approach to learning offered through ‘Minor’ courses. Students may opt for minors from other Schools such as the School of Design, School of Business, School of Computer Science and Engineering etc. These courses can complement their core courses in Economics to get a multi- disciplinary perspective to their thinking about the economy and the real world.