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by bmh_ca 3276 days ago
Effective at what?

A rather savvy economic-statistician once told me that economic theory is a very effective way to determine who has been able to get their theory published.

2 comments

Effective at predicting outcomes of interventions. As in: My country's situation is X. If I tweak such and such policies this way, will that lead to situation Y? And then it actually happening.
Not only that, but the current economic climate necessarily tells us where the effectiveness of economic theory lies.
Not Economic Theory, but Economic Practice as implemented by politicians and bureaucrats.

That's not to say that economic theory is all sound, but that even the soundest of theories doesn't stand a chance against the incompetence of government.

The "incompetent" economic behavior you speak of is also based upon theory.