Whacky Versus Dull (Fear Dull)

Here’s some crazy art theory that I encountered on a tour of the Lenbachhaus in Munich. It and similar ideas were central to inspiring Kandinsky and his compatriots.

“Blue is the male principle, stern and spiritual. Yellow the female principle, gentle, cheerful and sensual. Red is matter, brutal and heavy and always the colour which must be fought and vanquished by the other two.”

Franz Marc

German Expressionist Painter, 1880-1916

 

And look what it got us, a blue horse! Why would you think to paint a horse blue? It isn’t exactly intuitive, so as outmoded as the theory is, it did bring us something new, and something we can react to.

Here’s something boring, but far more dangerous, we were exposed to a derivative of this by the EU Commission. Don’t worry, I’m not asking you to make sense of it. Your eyes should glaze over.

“The trilemma more directly relevant to this conference theme is a financial stability trilemma put forward by Dirk Schoenmaker (2008), explaining the incompatibility within the euro zone of a stable financial system, an integrated financial system, and national financial stability policies. By far the most high profile current trilemma, as per some analysts, is the euro-zone trilemma: the seeming irreconcilability between its three wishes: a single currency, minimal fiscal contribution to bail outs, and the ECB’s commitment to low inflation.”
-Inaugural speech by Dr. Duvvuri Subbarao, Governor, Reserve Bank of India.

Confused? I hope so. If the above quote makes much sense at all you probably inhabit a rarefied and abstract world not often visited by human beings. Nevertheless this incredibly convoluted theory, meant to update previous macroeconomic theory for the financial crisis and the situation in the Euro Zone, is being used to justify a series of broad reforms which sound a lot like the reforms that economists always argue for.

We don’t need to trust or believe Marc’s theory, we have a blue horse to react to, and if we’re intrigued we can dig into the theory later. But the EU Commission’s economists, whose canvas consists of 28 member states, 24 languages, 507 million people, and $16 trillion in GDP, just ask us to trust them. Of course we cannot expect them to prove that their plan will work, but a bit of humility would be warranted, as most any theory driving human action is eventually made to look more ridiculous than a blue horse.