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Wednesday, November 16, 2011

Future of Economics


Imagineering is still a long way away. Fundamental impediments to imagineering skill exists. For example, many have a narrow focus and abstract the system to solve their problem.

First part of Imagineering is Engineering, an ethic that transforms theoretical science into applied science. In engineering, the stability of system is more important and thereon you make micro changes and measure the systemic stability. Economics takes a reverse approach, you estimate micro changes based on some logic and then try and build a system that is hopefully stable.

Economics is, till now, emerging as a theoretical science. No doubt economic systems are complex, but so were all other systems till we understood them. The deterministic nature of other system is function of our understanding. Even economics is macro-deterministic but micro-indeterminate.

In the end, Mark Thoma is right to say that we are moving in the right direction.



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