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wonderpup

Here's one for those who enjoy irony- economics fails due to a failed market for ideas inside the profession itself.

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In the competetion for scarce publication space in the leading economics journals herd thinking and intellectual conformity leads to catastrophic theoretical failures within the discipline;

 
 

 

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We are experiencing deep economic problems and it is the fault of the economics discipline. Their macro theories suck. But, there is no mechanism forcing it to alter its models when they don’t appear to work.

 

This is so because economists basically write for each other in a language only they understand and their jobs depend on impressing a limited number of journal editors and referees, not correcting real-world problems.

 

The academic inbreeding that has resulted has led to dysfunctional theories and, despite the fact that there were economists who accurately forecast the Financial Crisis, because their work is incompatible with what is published in “good” journals it has been all but ignored.

 

Economics is broken and there is no internal incentive to fix it.

 

 

 

http://www.zerohedge.com/news/2016-11-06/economics-broken-and-there-no-internal-incentive-fix-it-5-reasons-smash-ivory-towers

You have to laugh- the profession that spends it's time lecturing the world on the vital importance of free markets is an intellectual closed shop.:lol:

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1 hour ago, wonderpup said:

In the competetion for scarce publication space in the leading economics journals herd thinking and intellectual conformity leads to catastrophic theoretical failures within the discipline;

 
 

 

 

http://www.zerohedge.com/news/2016-11-06/economics-broken-and-there-no-internal-incentive-fix-it-5-reasons-smash-ivory-towers

You have to laugh- the profession that spends it's time lecturing the world on the vital importance of free markets is an intellectual closed shop.:lol:

I tend to look upon modern economists as a bit like the augurs of ancient Rome.  Their pronouncements tend to have as much meaning as divining the will of the gods from the flight of birds.

https://en.m.wikipedia.org/wiki/Augur

Of course, the truth is scientific accuracy is not the purpose of modern economics. It really just exists to give a form of intellectual justification to the way the economy functions to the benefit of certain groups rather than others. In that respect it is identical to ancient methods of divination which also were largely designed to prop up the social and political status quo.

Edited by stormymonday_2011

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Even when they know the (negative) outcome of their policies they ignore it.  They know that their QE etc policies fail and don't work for the real economy but they persist with them because they help to line their own pockets.

An interesting chart from a previous zerohedge article - and from the chart you can see exactly what Carney and his pals seem to be up to.  

It's plain to see - kicking the can to benefit themselves and their pals but ultimately destroying what "growth" there is (or could be) without QE.

 

http://www.zerohedge.com/news/2015-01-02/if-quantitative-easing-works-why-has-it-failed-kick-start-inflation

 

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Edited by billybong

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The economics profession is a perfect example of the limits of it's own prevailing mythology that markets are the answer to every organisational problem- the need of individual economists and by extension the organisations that employ them to make a living compels them to abandon intellectual rigor in favour of ideas that are well rewarded by those who fund the profession.

Here's a magnificent example of the intellectual gymnastics that are performed by some of the people involved in the analysis of economic policy;

 
Quote

The Washington Center for Equitable Growth is a new research and grantmaking organization founded to accelerate cutting-edge analysis into whether and how structural changes in the U.S. economy, particularly related to economic inequality, affect growth. Core to our mission is helping to build a stronger bridge between academics and policymakers so that new research is relevant, accessible, and informative to the policymaking process.

So far so good- all very worthy stuff- but there's a problem;

Quote

Our mission is to be “fiercely independent.” Every day, we must convey to academics and policymakers that our research is unbiased and honest. While we believe there is much to be gained from our affiliation with CAP, we also believe that for us to be successful—and to do the most to support the work of CAP and other progressive organizations—requires that CAP’s support “leaves no fingerprints.” (Please burn this email after you read it!) We want to be able to tap into CAP’s resources—and allow them to tap into ours—as it makes sense, but with a public-facing image that is independent of CAP.

the CAP in question is another “fiercely independent.” outfit called the Center for American Progress;

So while the Washington Center for Equitable Growth was keen on being “fiercely independent.” in order to retain it's credibility among policymakers, it also wanted  'to be able to tap into CAP’s resources' so the solution was to present a fake front of having that feirce independance to the public while privately engaging in a degree of behind the scenes collusion with the CAP.

Quote

And there you go, all it takes is a couple of phone lines and a new website and another liberal "advocacy group" becomes a "fiercely independent" economic research organization with the credibility to influence public policy in an "impartial" way.

http://www.zerohedge.com/news/2016-11-07/podestas-fiercely-independent-research-organization-seeks-progressive-insight-leaves

 

Ok, in terms of the corruption of public life and the data upon which Politicans rely to help make their decisons this is hardly the most egregious case- but the casual cynicism on display here is emblematic of the rot that now seems endemic throughout the Economics profession and indeed the wider Political landscape both in the US and the UK. The infestation of money and politics has rendered Economics more of a Public Relations discipline than an empirical science.

 

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5 hours ago, wonderpup said:

The economics profession is a perfect example of the limits of it's own prevailing mythology that markets are the answer to every organisational problem- the need of individual economists and by extension the organisations that employ them to make a living compels them to abandon intellectual rigor in favour of ideas that are well rewarded by those who fund the profession.

Here's a magnificent example of the intellectual gymnastics that are performed by some of the people involved in the analysis of economic policy;

 

So far so good- all very worthy stuff- but there's a problem;

the CAP in question is another “fiercely independent.” outfit called the Center for American Progress;

So while the Washington Center for Equitable Growth was keen on being “fiercely independent.” in order to retain it's credibility among policymakers, it also wanted  'to be able to tap into CAP’s resources' so the solution was to present a fake front of having that feirce independance to the public while privately engaging in a degree of behind the scenes collusion with the CAP.

http://www.zerohedge.com/news/2016-11-07/podestas-fiercely-independent-research-organization-seeks-progressive-insight-leaves

 

Ok, in terms of the corruption of public life and the data upon which Politicans rely to help make their decisons this is hardly the most egregious case- but the casual cynicism on display here is emblematic of the rot that now seems endemic throughout the Economics profession and indeed the wider Political landscape both in the US and the UK. The infestation of money and politics has rendered Economics more of a Public Relations discipline than an empirical science.

 

 

To paraphrase Groucho Marx

Those are their principles but if those providing the funding don't like them then they have others.

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...the dismal science...cant remember who said that.? Its not news that economics is a flawed discipline. The important thing is to maintain confidence in what on any rational analysis is a total farce.

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I studied classical economics in the 1960s

being a Geology graduate, I had trouble in accepting that there was no hard evidence. I was used to going out on field trips, note book etc. in hand and studying things that had already been analysed, for myself.

I could see for myself that the facts were as stated.

Economics is NOT a science.

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On 11/6/2016 at 10:31 PM, wonderpup said:

In the competetion for scarce publication space in the leading economics journals herd thinking and intellectual conformity leads to catastrophic theoretical failures within the discipline;

 
 

 

 

http://www.zerohedge.com/news/2016-11-06/economics-broken-and-there-no-internal-incentive-fix-it-5-reasons-smash-ivory-towers

You have to laugh- the profession that spends it's time lecturing the world on the vital importance of free markets is an intellectual closed shop.:lol:

...economics is an art ...not a science ..and can be portrayed in endless ways ....just as well to employ a stargazer ...or in many cases a propaganda horn ...but..there are one or two I have seen on the pulse and champions....:rolleyes:

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