Literature and Economics
From Zanecorpwiki
2010-03-12
Big Idea: We are creatures of literature and thrive on story and patterns. Economics would be better served by focusing on narratives than focusing on statistics. The field fits it better. This is a non-mainstream view that I have a lot of sympathy with.
- Russ proposes that we may focus on empiricism not because it is correct, but because it's easy to test and grade (easier than essays and literate approach) - Ed points to the "business cycle" model which, he claims, has no basis in fact. 8 of the last 10 downturns were led by housing, then consumer slowdowns. Business slowdown was the last happen and almost always occurred when *after* the recession had officially begun. Business cycle seems more effect, not cause. Yet empirical data, with no story, can be made to seem as evidence for the business cycle idea.
