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Why Economic Models are Always Wrong

mayberry42 (1604077) writes | more than 2 years ago

4

mayberry42 (1604077) writes "Did you ever wonder how and why professional economists often seem to get it wrong in terms of predicting consequences or policies accurately (or even at all)? Or how very few even saw the current economic collapse? This article provides an interesting, if obvious, reason as to why economic models are effectively always wrong. Of course, the recent press conference with the two recent nobel prize winners does not bode well to our most beloved social science either."
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4 comments

Try Austrian Economics (1)

Mike (1172) | more than 2 years ago | (#37847494)

The Austrian School of Economics predicted the mess we're in now.

Go back and see what the likes of Ron Paul, Peter Schiff, and all the fine folks over at The Ludwig von Mises Institute (mises.org) were saying back before the housing bubble burst. All the Keyesian economists (the ones who caused the mess we're in now) said they were nuts. But no, they were right.

Quotation from George Box (1)

Zugok (17194) | more than 2 years ago | (#37847710)

"All models are wrong, but some models are useful."

Re:Quotation from George Box (1)

Pence128 (1389345) | more than 2 years ago | (#37851918)

Economic models are delicate and precise instruments designed to extract money from suckers.

Economist "discover" chaotic systems (1)

marcosdumay (620877) | more than 2 years ago | (#37850834)

Well, I guess I don't have much more to say... An economist just "discovered" chaotic systems. How long until they finaly understand math?

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