Beware snake oil salesmen!
Economics
Bloomberg columnist Mohamed El-Erian recently lamented that the discipline of economics “is divorced from real-world relevance and has lost credibility.” Among the problems he mentions currently afflicting the field are the following:
The proliferation of simplifying assumptions that lead to an “overreliance on excessively abstract estimation techniques and approaches.” Insufficient consideration of the possibility that financial dislocations can disrupt the economy. Poor and grudging adoption of important insights from behavioral science and other disciplines. An oversimplification of uncertainty. An overemphasis of equilibrium conditions and mean reversion, and an underemphasis on structural changes and tipping
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