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Math is a language, it doesn't make something scientific (or not scientific). The issue of math and science are unrelated. The problem with macroeconomics is n
by ivalm 8y ago
Math is a language, it doesn't make something scientific (or not scientific). The issue of math and science are unrelated. The problem with macroeconomics is not the tools they use, it is that it does not have predictive power. We cannot meaningfully (better than martingale or historical MA) predict GDP/inflation/SP500 return etc. A lot of macro assumptions are obviously wrong (people do not optimize marginal utility, people have transitive preferences, nobody can meaningfully compute externalities of basically anything, etc)..