My post for today is a bit of homework for the weekend. Especially for those of you who studied economics but haven’t yet noticed you were hoodwinked.
The pdf to download is written about Manchester Uni but that can be ignored as it is representative of a gross misunderstanding over decades, in fact centuries, of how economics should be analysed and Haldane (the author) is soon to be in a position where he can actually wield some influence, which I reckon is a very good thing. Bear in mind all the central banks use dysfunctional models (and that is not a conspiracy theory). Their current speculations are driven by dysfunctional modelling and I strongly suspect they will be proven to be wrong, as they have often been in the past. The Fed is especially renound for being behind the curve. Predicting the future is not going to be accurate but when the institutions are blinkered, the models are ignorant and the assumptions false then you are onto a loser from the start.