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There will rarely be a perfectly correct model of economics, and there are two main challenges of why that is not something achievable. First, because economic
by conanbatt 8y ago
There will rarely be a perfectly correct model of economics, and there are two main challenges of why that is not something achievable.
First, because economics is the study of exchange, which means the exchange between a human being and another one. Understanding human behavior in its totality is like trying to understand our brains or our own consciousness. It suffers from a halting-problem level dilemma.
Second, because the study of economy tends to be about its application, it will always fail to obtain perfectly predictable results because humans are not perfectly predictable. And humans fight back. It is aking to believing you found the perfect method of making someone fall in love with you: as desirable as it is preposterous to believe you can achieve it.
Whatever model of economics you have, if it has room for 1% of human behavior, rest assured that its enough to take it down.