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Pragmatic Capitalism

Capital for Living a More Practical Life

Read of the Day: Beware Economists Peddling Elegant Models

Good thoughts here from theoretical physicist Mark Buchanan.  In a Bloomberg piece he warns us to beware of economists peddling elegant models:

“If economists jettisoned elegance and got to work developing more realistic models, we might gain a better understanding of how crises happen, and learn how to anticipate similarly unstable episodes in the future. The theories won’t be pretty, and probably won’t show off any clever mathematics. But we ought to prefer ugly realism to beautiful fantasy.”

Realism, realistic models and a better understanding of our problems using a purely descriptive version of the money system?  Sounds like Buchanan is referring to Monetary Realism.  Even better, none of its founders are economists.  🙂

Read the full thing here.

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