4 ms·
> assume a spherical cow on a frictionless plane It's even worse than that. In physics, we know in principle what's wrong with that model and how to fix it. Ma
by t_mann 4y ago
> assume a spherical cow on a frictionless plane
It's even worse than that. In physics, we know in principle what's wrong with that model and how to fix it. Macroeconomics would need to ditch its entire modelling paradigm, except that we still don't really have a good replacement.
https://paulromer.net/the-trouble-with-macro/WP-Trouble.pdf https://paulromer.net/the-trouble-with-macro/WP-Trouble.pdf
- contingencies 4y agoClassical economics is based on a false analogy with Newtonian physics. - George Soros, billionaire The better replacement is behavioral.
- paganel 4y agoBehavioral economics also gave us all that nudge non-sense, so not sure that’s a good choice, either. Economics as a whole would certainly gain from using less maths, but unfortunately I think that ship has sailed by now.
- contingencies 4y agoI agree on all points.