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I would disagree - the economy is anti-inductive[1] (in that it resists attempts to understand it). As soon as you implement the results of your sufficiently-sophisticated model, the economy will start to be influenced by that.

Any viable model of the economy would therefore have to recursively contain a model of the model of the economy and so on.

[1] http://lesswrong.com/lw/yv/markets_are_antiinductive/



This is the second time in a week this article has come up so I read it. I've never read anything about economics that made any less sense than that.

> As soon as you implement the results of your sufficiently-sophisticated model, the economy will start to be influenced by that.

This is called a feedback loop, systems with feedback loops are well understood.




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