E The Difference Between Globanomics, Finance, And Economics

Recently a friend asked me to explain the difference between Finance, Economics, and my new discipline, Globanomics. 

Here is my response:

"It might help you to look at each of the three disciplines as interrelated and interdependent blocks in a pyramid. To keep the pyramid strong all three blocks and their adjuncts need to operate fully and transparently. The Globanomics-block mediates the other two blocks of finance and economics. As such, Globanomics is the eye of the pyramid (like the symbol of the eye in the pyramid on the one-dollar bill note) that equilibrates the other blocks for fairness and optimum efficiency. Whereas finance and economics serve globanomics, globanomics cannot exist in its ultimate form without good finance and good economics.

“I equate finance with business, and economics with economists. Financiers tend to talk in terms of NPV, IRR, cash flows, amortization, net income, discount rates, assets, liabilities, equity, etc. Economists, on the other hand, tend to talk in terms of inflation, GNP, unemployment rates, interest rates (long and short), econometric models, Keynesian versus Austrian theory, etc.

“And regardless of how much time I spend learning and trying to decipher the two different languages, based upon my own experience, I have come to view people involved in the science of finance and business as having typically a more Optimistic perspective than do those involved in what some have called the dismal science of economics. And for that reason, I consider the finance and business-block to be senior to economics and economists-block on the pyramid.

When my friend asked me how I felt Globanomics differed from Economics, here is what I said:

“Those who listen to the "Economists" see the United States as one of many countries struggling (or fighting) for the same piece of pie. Those who listen to the "Globanominalists" see the United States as the leading country in a host of countries that are creating a bigger pie.”

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