Mad money

Daniel Kahneman is a very modest man — amazingly so for someone who has won the Nobel prize in economics. When I met him in the lobby of a London hotel, he never used his very great intelligence in the way that some very distinguished economists do, to bully or to intimidate. ‘But then I am not an economist,’ he says with a mischievous smile. ‘I am a psychologist.’

Prof. Kahneman smiles a great deal. His eyes sparkle behind his large spectacles. His cheeriness is infectious, but it is also disconcerting, given that he is not optimistic about humankind. He thinks, for instance, that it will be ‘miraculous’ if we manage to do anything to stop global warming. ‘Let’s suppose that the scientific consensus is correct: global warming is happening, and it will have some catastrophic consequences. By the time it becomes obvious to everyone that it’s a danger, it will probably be too late to do anything that will be effective in combating it.