Article II. The active fund industry facing its fate: or why Mr. Keynes still matters.

Keynes was the greatest economist of the last century. He was acute and most of the time right in his analysis. Why? Because he was embracing a very modest and humble attitude: To understand what is going on, to provide advice, and so to improve the current state of affairs, you need to be present/involved. That is, you must patiently spend time carefully describing the mechanisms, that define an economy. What matters is to face what is in use in the economy, not what we believe is used. A theoretical debate is useful for shedding light on human choices. However, institutions, such as the stock market, must be carefully described for what they are because their mechanisms deeply influence agents’ choices!

In short, Keynes was like a biologist: What is killing a virus today is unlikely to work tomorrow because the virus will evolve into something different and therefore…