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I love this. Economics is such a complicated system that the expert opinions have long been biased toward the 'opinion' side, forget about the large stakes in t

I love this. Economics is such a complicated system that the expert opinions have long been biased toward the 'opinion' side, forget about the large stakes in the game that the loudest voices hold. A physical model of network effects that presents phase transitions gives us a view into the underlying reality. So cool. Sadly, for 100+ years we've known about the destructive effects of deflation on leveraged economies (Much longer for the accelerated growth that comes with leverage), yet the leadership in political economics continues to call for hard money and budgetary surplus, which doesn't even make sense with respect to accounting identities.

bendykstra 11y ago
> Economics is such a complicated system that the expert opinions have long been biased toward the 'opinion' side > A physical model of network effects that presents phase transitions gives us a view into the underlying reality. Here, imperfect mental models (aka opinions) are replaced by imperfect computational models. There's nothing inherently superior about this model just because it has been translated into code. It should be regarded as a tool to understand the consequences of the assumptions that went into its design. If those assumptions are unsound, the model is unsound and will not reflect real economic systems.