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It's not that mathematical models make a theory more valid or sophisticated. They make it testable, which is why neoclassical economics > both Austrian and MMT.
by jackcosgrove 4y ago
It's not that mathematical models make a theory more valid or sophisticated. They make it testable, which is why neoclassical economics > both Austrian and MMT.
If Austrian school economists want to gain mindshare, they should develop models, backtest them, and report the results. Same for MMT.
By the way MMT is a political phenomenon. There are very few professional economists who think it is workable.
- SnowHill9902 4y agoNot everything is testable. That’s a modern reductionist approach to reality. Scientifically oriented people tend to think the opposite because scientists are strongly biased towards studying testable phenomena, providing a false impression of general testability.