What is Economics?

princeofpounds

The predictive power of meteorology is now pretty good, over a fairly short timeline. Given the chaotic way weather works, it's quite impressive.




But there are some things that meteorology is very accurate at, but we take it for granted if it works - predicting seasons, for example, is still meteorology, but obviously much easier to understand.


Economics is in a similar state. It does have some predictive value on the macro level, but not much - probability confidence fades after a few quarters. It can also do some things very well, especially on a micro level, which people take for granted.