Rightsizing behavioural economics

Tim Harford is outclassed by none when it comes to expressing important ideas simply yet forcefully:

I have been as guilty as anyone of being fascinated by behavioural economics. But the financial system did not fail because of some psychological trait, but because it was riddled with damaging incentives that were hard to spot because the system was complex and changing quickly.

In other words, let's get over evil bankers and the belief that moralizing will change the world, and let's focus on incentives.

Read the whole article, which discusses changing British thinking and practice on counter-insurgency in Afghanistan.

And yes, rightsizing is a real word, apparently.