Nailing It Down: On Complexity of Modeling and the Limits of Economics
· 29.06.2023 · 04:22:08 ··· ··· Thursday ·· 4 (4)
C. Derick Varn In a discussion with my MMT friend, I realized that while the neo-classical paradigm almost is certainly wrong, even when I agreed with his Warren Mosler-inspired MMT analysis in part, the explanatory power being given to currency flows didn't seem as obvious to me. I also looked over data about declining profit rates and corporate crises that also didn't fit that model even though his explanations do make sense if I am treating back of the napkin calculations as explanatory. It got me thinking about the nature of economic abstraction and the limitations of all these kinds of models as explainers of causes. I think he is right about something being rotten in the Fed's thinking and the limits of conventional economics, but I may go much further than him ultimately.
Here are some references:
https://www.bls.gov/news.release/pdf/empsit.pdf
https://www.marketwatch.com/economy-politics/calendar?fbclid=IwAR0YcIFYlAumqQlXOo8SsgM75Mr-ViKzT29-6gKO0GE1vD0po3X4CA_kVIQ
https://www.cnbc.com/2023/06/24/high-interest-rates-economic-uncertainty-boost-corporate-defaults.html
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Crew:
Host: C. Derick Varn
Cohost of Excavations: Jordin Dubin
Cohost of Vulgar Complexity: Abi Hassen
Audio Producer: Paul Channel Strip ( @aufhebenkultur )
Intro Music: Spaceship Revolution by Etienne Roussel (Grim Intro), Bitterlake (Political Intro), Bitterlake (Strange Intro)
Outro Music: Bitterlake
Intro and Outro Video Design: Djene Bajalan (Grim Intro, Political Intro, Outro), Bitterlake (Strange Intro)
Art Design: Corn (https://www.patreon.com/cornflow) and C. Derick Varn
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