11/20/2011

The role of economics

The whole point of studying equilibrium is to understand what happens when things are not in equilibrium, in one particular way or another.

Philips Curve: a historical inverse relationship between rate of unemployment and rate of inflation. The lower the unemployment rate, the higher the rate of inflation.

Economics is scientific only in the sense of having some of the procedures of science. In principle, economics is much like meteorology. Economics is ultimately about systemic results, not personal intentions.

There are personal bias in economics.

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