The Real World Ignores Mainstream Economics

So much for the use the mainstream economics’s dynamic stochastic general equilibrium models. This post from the Sound Money Institute points out that financial firms pay little attention to mainstream economics except in their attempts to predict the behavior of central banks. They note:

This should come as no surprise to students of the Austrian school. Ludwig von Mises criticized those employed mathematical wizardry in their economic thinking. By pointing out that economics does not need to follow the model of natural sciences such as physics and chemistry, he showed the way to a more real world economics, one not dominated by calculus and differential equations.

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