Nobel-Prize-winning economist Paul Krugman argues thatbusiness leaders need to understand the differences betweeneconomic policy on the national and international scale andbusiness strategy on the organizational scale. Economists deal withthe closed system of a national economy, whereas executives live inthe open-system world of business. Moreover, economists know thatan economy must be run on the basis of general principles, butbusinesspeople are forever in search of the particular brilliantstrategy. Krugman's article serves to elucidate the world ofeconomics for businesspeople who are so close to it and yet arecontinually frustrated by what they see.
