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>> Unless you consider running regressions on historical data falsification? You can make predictions about how policies or exogenous shocks will effect demand
by jljljl 13y ago
>> Unless you consider running regressions on historical data falsification?
You can make predictions about how policies or exogenous shocks will effect demand/supply/GDP, and then see how things play out in the real world.
For example: People can claim that quantitative easing will lead to heightened inflation in X years. This claim can then be observed, tested, and falsified.
- nathan_long 13y agoGood point. But: >> People can claim that quantitative easing will lead to heightened inflation in X years. This claim can then be observed, tested, and falsified. ...which is useful if you can create models that repeatedly make correct predictions.