Tuesday, 30 April 2013

Taleb Targets The Economic Establishment - Business Insider

Wow! As an economist, I would regard Taleb as doing very useful work if he says he is targeting poor work by established economists, and he should obviously be given thumbs up credit for trying. 

Really good economists have, however, realised long before Taleb that it's a question of theory matching a nonlinear hard to describe reality that is continuously evolving.  Much of our economic problem has nothing to do with economic analysis, but statistical collection and historical assessment!

In a world where economic decisions are largely made in secret, much theory is purely guesswork!

Taleb has to consider that a science as complex and uncertain as economics is going to be highly schooled. There are schools of thought in economics and Taleb might begin reading Schumpeter's history of economic thought. If he read about half of Schumpeter's work, he would realise that macro economics was a non-starter as soon as it tried to capture the essence of evolving non linear economies through static largely linear economic models.

In reality, economics like painting and horticulture is an art with a little science to help it out.

Thanks for trying help Taleb, no one's perfect!


Find more sketches from scratches:  http://Woohs.blogspot.com   

Send 'like' email to wuhlax@outlook.com to receive free book voucher, buy my book "Wuh Lax and the Cosmic Lantern" on line from Amazon UK:

YOU HAVE REACHED WOOH'S STREAM
The Internet User's Best Kept Secret

Sketches from scratches is a provocative blogspot that has grown out of the Wuh Lax experience. It is eclectic, which means that it might consider just about anything from the simple to the extremely difficult. A scratch can be something that is troubling me or a short line on paper. From a scratch comes a verbal sketch or image sketch of the issue or subject. Other sites have other stuff that should really be of interest to the broad reader. I try to develop themes, but variety often comes before depth. ... more!