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Furthermore, theories in economics are descriptive. One should not expect with certainty an innovative currency to succeed or fail based on how well it matches
by maaku 13y ago
Furthermore, theories in economics are descriptive. One should not expect with certainty an innovative currency to succeed or fail based on how well it matches a particular theory. When we are in new territory, we should expect a few surprises.
- bitcoin-truth 13y agoScientific theories are falsifiable: they make testable predictions. Austrian Economic theory comes closest to this ideal.
- maaku 13y agoAnd now you've discovered why economics is a social science. It builds models of human behavior. Humans are non-deterministic at this scale. As soon as you build an economic model, it's possible it stops working because its existence influences the behavior of the humans its modeling.