Saturday, May 7, 2016

Lars P. Syll — Why ‘Economics and Reality’ is on my top 10 list

Fit the tool to the job rather than trying to fit the job to the tool.

Lars P. Syll’s Blog
Why ‘Economics and Reality’ is on my top 10 list
Lars P. Syll | Professor, Malmo University

1 comment:

Matt Franko said...

"Our mathematical representations of both individual and system behaviour require the assumption of closure for the models to have determinate solutions. "

Same thing in Control Systems Theory:

"A Closed-loop Control System, also known as a feedback control system is a control system which uses the concept of an open loop system as its forward path but has one or more feedback loops (hence its name) or paths between its output and its input. The reference to “feedback”, simply means that some portion of the output is returned “back” to the input to form part of the systems excitation."

But ofc economists with their stochastic models dont think like this.... they dont think deterministic/closed...

This is the key paradigm shift you need to make to understand the difference on how to analyze/operate the numismatic system we now have vs. the system we had when we were under the metals... you have to shift over to deterministic thinking or else you are acting as if we are still under the metals....