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comment by Optimouse

I'm a pretty good chemist but I can't really understand macroeconomics. I makes me a nauseous to read an article claiming dire futures and having no way to confirm it.





kleinbl00  ·  3304 days ago  ·  link  ·  

That's because chemistry is bounded by math and physics while economics is bounded by politics and fashion. Piketty made the point in Capital that only Americans consider economics to be a hard science; in Europe it's considered more like sociology or anthropology and pretty much absolutely nothing like, say, statistics.

You also have to keep in mind that there will always be a market for "the sky is falling" narratives. On the other hand, "things are pretty okay" stories not only don't get sold, they don't even get read.

OftenBen  ·  3303 days ago  ·  link  ·  

    there will always be a market for "the sky is falling" narratives.

Guilty.

user-inactivated  ·  3304 days ago  ·  link  ·  

Do we think of economics as a hard science though? It's mathematical, but so is numerology.

user-inactivated  ·  3304 days ago  ·  link  ·  

Economics is a social science.

bioemerl  ·  3303 days ago  ·  link  ·  

It's both, really. Most similar to macrobiology, IMO.

mk  ·  3304 days ago  ·  link  ·  

Yes, they call economics the 'dismal science' for a reason. It's necessarily full of psychology, speculation, and curve-fitting.

At best, I think one can look at deviations from historical means, and then try to conclude if the cause for the deviation is long-lasting or not.

It is a fairly popular view that monetary policies enacted to fight the last large recession fueled equity and asset bubbles, without the intended effect upon inflation, at least up to this point.

kleinbl00  ·  3304 days ago  ·  link  ·  

The problem is that for any economic model, you start by excluding data that doesn't fit your parameters - like Piketty arguing that the past 60 years are anomalous because of global warfare and therefore we need to pay closer attention to the 1850s or Goodhart et. al. arguing that the past 60 years are the only thing that matters because China and Collapse of the USSR therefore PIketty is full of shit.

mk  ·  3304 days ago  ·  link  ·  

Agreed. Of course, you can say something about the mean 10 year treasury rate over a given amount of time, but even in such a straight forward measure, whether or not the same rate at a different time has similar effects is anyone's guess.

I guess the question is: Is the question worth asking?

It's kind of like philosophical debate. Rarely is anything settled, but the process seems to have some value.

kleinbl00  ·  3304 days ago  ·  link  ·  

I think the question is totally worth asking, and I think you should never trust anyone who thinks they have the one true answer.