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I do know how data science works. > The algorithm is to be tuned over historical data So you’re saying that historical data can’t have biases? Data cannot be

• OutOfHere 9mo ago
  If data is not collected, it is missing. A decent algorithm will be robust to missing data. How on earth do you think the Fed sets the rate? Each board member probably has a simple spreadsheet, although they use their gut feeling in the end. It's markedly less objective and completely un-transparent. People here are funny in that when I preach for transparency and objectivity, they preach for obscurity and individual board member bias. Their skepticism of data science shows how uneducated they are about defining and optimizing an objective function.
  • pixelatedindex 9mo ago
    I’m not saying I’m against an algorithm. I’m saying that I’m against _only_ an algorithm. And we do want transparency and objectivity - nobody is denying this. I’ve worked with enough data to know that there are implicit biases, and just because data exists doesn’t mean it’s good. Let’s just say I’m skeptical that an algorithm alone can replace the Fed. > although they use their gut feeling in the end. That gut feeling check is pretty crucial, I think. Why not just work to make the Fed a more transparent org? And let’s say it is by an algorithm - will it be open sourced so it can be vetted? Edit: also more crucially, who’s responsible when the algorithm fucks up?