Knowledge Bank

Economic historian Hilton Root came to Mershon to discuss his newest book, Capital and Collusion (Princeton University Press 2005), in which he proposes a new analytical framework for economics. While most current economic theories propose that market transactions manage risk most efficiently, Root contended that economies in the developing world do not operate in this manner, so in order to bring the developing economies up to pace with major industrialized countries, policy makers must distinguish between “measurable risk” and “un-measurable opportunities,” as economists had done in the early 20 th century.