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What financial crises/trends do aggregate models predict? Unfortunately, current economic theory resides in a grey area of ideology because of how poorly it exp
by washedup 13y ago
What financial crises/trends do aggregate models predict? Unfortunately, current economic theory resides in a grey area of ideology because of how poorly it explains and predicts such things. Assumptions can often be made in any ideological direction.
I also don't claim that the entire Wikipedia article is useful, I just wanted to expose you to some of the ways economists are using biological system (ecology) to model an economy.
- csentropy 13y agoWell, austrian economists have predicted the 2008 housing/financial crisis. A good methodology can predict crises based on aggregate models. Predicting when is a different issue, although some have done that, at least with the 2008 financial crisis. http://www.lewrockwell.com/2010/12/walter-e-block/who-predicted-the-housing-bubble/ http://www.lewrockwell.com/2010/12/walter-e-block/who-predic... http://archive.lewrockwell.com/block/block168.html http://archive.lewrockwell.com/block/block168.html