Economic theory Quote by Michael Lewis
““The only inexplicable aspect of the process was that economic theory (which is, after all, what economics students were supposed to know) served almost no function in an investment bank. The bankers used economics as a sort of standardized test of general intelligence.””
About This Quote
In investment banking, economics is often used as a proxy for intelligence rather than a practical tool for decision‑making.
In simple terms: Economics serves as a credential test.
Key Takeaway
Banks prioritize perceived intellect over applied theory.
Themes
finance
economics
human resources
culture
skill assessment
Mood
critical
skeptical
insightful
Type
observational
critical
analytical
When to use this quote
- recruitment strategy
- training program design
- organizational audit
Key Concepts
credentialism
practical irrelevance
Practical Applications
- HR policy review
- skill‑mapping
Questions to Reflect On
- Why do firms favor academic signals?
- How can practical expertise be better valued?
A Different Perspective
Some banks may still rely on economic models for risk assessment, contrary to the claim.
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