by The issue of interpreting economic theory is, in my opinion, the most serious problem now facing economic theorists. The feeling among many of us can be summarized as follows. Economic theory should deal with the real world. It is not a branch of abstract mathematics even though it utilizes mathematical tools. Since it is about the real world, people expect the theory to prove useful in achieving practical goals. But economic theory has not delivered the goods. Predictions from economic theory are not nearly as accurate as those offered by the natural sciences, and the link between economic theory and practical problems … is tenuous at best. Economic theory lacks a consensus as to its purpose and interpretation. Again and again, we find ourselves asking the question “where
Topics:
Lars Pålsson Syll considers the following as important: Economics
This could be interesting, too:
Robert Skidelsky writes Milton Friedman – economic visionary or scourge of the world?
Robert Skidelsky writes Britain’s Illusory Fiscal Black Hole
Lars Pålsson Syll writes What economics can learn from epidemiology
Lars Pålsson Syll writes Assar Lindbeck — a Hayekian neoliberal
The issue of interpreting economic theory is, in my opinion, the most serious problem now facing economic theorists. The feeling among many of us can be summarized as follows. Economic theory should deal with the real world. It is not a branch of abstract mathematics even though it utilizes mathematical tools. Since it is about the real world, people expect the theory to prove useful in achieving practical goals. But economic theory
has not delivered the goods. Predictions from economic theory are not nearly as accurate as those offered by the natural sciences, and the link between economic theory and practical problems … is tenuous at best. Economic theory lacks a consensus as to its purpose and interpretation. Again and again, we find ourselves asking the question “where does it lead?”