An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
When gaps widen, do even the perps know what started the momentum, or what consequences lie ahead?
At the root of all gross and growing asset mismanagement is a failure to tune growing feedback-response in order to shape acceptable outcomes.
In physiology, we call that gangrene. In politics, we call that fixation on simplistic concepts like capitalism ... while ignoring all other forms of emerging system feedback.
Any race car pit crew learns to use all available information to improve team performance. What, exactly, is keeping national electorates from improving national outcomes?
Where is the sense in what we're doing? What we have here is a failure to communicate.
Roger, the presumption is that free markets populated with rational actors pursuing max utility are nearly perfectly flexible and will react immediately to feedback.
This ignores that societies are institutionally and culturally configured, that transmission of information throughout the system is not instantaneous, and that significant cognitive-affect bias is operative.
These are source of friction that lead to inefficiency. It's difficult to address reducing them when the presumption is that feedback is working fine and doing anything will just disrupt it.
3 comments:
When gaps widen, do even the perps know what started the momentum, or what consequences lie ahead?
At the root of all gross and growing asset mismanagement is a failure to tune growing feedback-response in order to shape acceptable outcomes.
In physiology, we call that gangrene. In politics, we call that fixation on simplistic concepts like capitalism ... while ignoring all other forms of emerging system feedback.
Any race car pit crew learns to use all available information to improve team performance. What, exactly, is keeping national electorates from improving national outcomes?
Where is the sense in what we're doing? What we have here is a failure to communicate.
Roger, the presumption is that free markets populated with rational actors pursuing max utility are nearly perfectly flexible and will react immediately to feedback.
This ignores that societies are institutionally and culturally configured, that transmission of information throughout the system is not instantaneous, and that significant cognitive-affect bias is operative.
These are source of friction that lead to inefficiency. It's difficult to address reducing them when the presumption is that feedback is working fine and doing anything will just disrupt it.
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