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354 sats \ 5 replies \ @SimpleStacker 9 Dec \ on: Bitcoin Is Venice And Academic Economics econ
No, I think it's wrong and I'm not sure where he got that idea from. Some examples or citations would have helped to explain where he's coming from.
First, I don't think it's true at all to say that academic economics is "enamored with finance". That's a weird thing to say, because finance is actually considered an entirely separate field, with the finance and econ usually being separate departments, granting separate degrees, up to and including PhDs in Finance vs. PhDs in Economics. There are a bunch of economists, including myself and probably @Undisciplined, who don't primarily deal with finance.
Second, the mathematization of economics was happening long before financial data became widely available or prevalent. I'd say that the mathematization of economics happened because (if you want to look at it charitably) it was necessary. Some problems get too complicated to analyze easily with words, especially when there are competing forces that push in opposite directions. A less charitable interpretation would say that economists have "physics envy". That is, they want to be taken seriously as scientists and therefore prize rigorous mathematical analysis. I'd say the latter interpretation may be driving the obsession with math nowadays, but that the introduction of math to econ was more driven by necessity at the start.
Lastly, I don't think political interference in economics has much to do with its mathematization, nor would I say that the interference is primarily through financial markets. There are plenty of examples of political interference through fiscal policy and through regulation.
So... yeah, this may sound critical, but I have no idea where he got these ideas from...
I didn't include it in the quote, but "physics envy" is a big part of their argument in the chapter.
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That part is definitely true and my view is that it leads to using the wrong kind of mathematics, more so than too much.
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Just for perspective, neither Farrington nor Sacha Meyers are economists. Farrington has a first in Mathematics and Philosophy. Meyers is a geologist, I think.
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It may be a function of the kinds of economists they tend to interact with. It does seem to me that a lot of the "think bros" that investors are likely to interact with, and especially those likely to comment on bitcoin, are financial economists. Nouriel Roubini and Nassim Taleb, for example, are both financial economists.
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Aha. I think you may be on to something.
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