Diigo Links

Wednesday, February 10, 2010

Marginal Revolution blog has a pointer to a James Buchanan paper "Economists Have No Clothes", calling into question the viability of economics as a "science".

I think Buchanan and everybody arguing the explainability/predictability of large complex systems are missing the point. If "the economy" were explainable and predictable, it would cease to function. If a group of people cracked the nut of economics, giving them the ability to accurately predict the future movement of the market, you'd be a fool to try to compete in a market against them. That economists continue to hammer away at the intractable is not a waste of time. That they are unable to resolve all of the problems of economics actually shores up the power of the market by continually proving, again and again, that nobody owns this game.

(above is the comment I posted on Marginal Revolution - click through on the link to see the rest of the comments - always great comments on MR - just wanted to have the sentiment here for keeps)

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