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It doesn't "correctly" predict anything because most of macro-economics is junk science with value only in the limited context of political platforms and giving
by biogene 3y ago
It doesn't "correctly" predict anything because most of macro-economics is junk science with value only in the limited context of political platforms and giving people some sort of false hope. When the Nobel prize winner of Economics says its all bullshit, I tend to take notice :)
https://www.motherjones.com/kevin-drum/2016/09/famous-economist-paul-romer-says-macroeconomics-all-bullshit/ https://www.motherjones.com/kevin-drum/2016/09/famous-econom...
- sokoloff 3y agoSupply and demand effects and the effects of price controls on supply is a topic of microeconomics, not macro.
- sethammons 3y ago> For the record, Romer is calling out one theory and one mathematical construct. The theory is RBC, or Real Business Cycle theory, which suggests that fluctuations in growth are caused by external shocks (oil prices, new inventions, etc.) not by anything central banks do Soooo not the theory of supply and demand.
- somewhat_drunk 3y ago[flagged]
- mrguyorama 3y agoImportant to note here: "The Nobel prize of Economics" is not actually a real Nobel prize. It is another third party "prize" setup to emulate the nobel system, so it's much more like the "Nobel peace prize". It's another example of economics pretending to be more rigorous and functional as a science than it actually is.