Home > Austrian School, Bell Curve Blues, Mainstream failure, The Makian Distribution > Mainstream economists despise non-linearity

Mainstream economists despise non-linearity

Yet another old, ignored, research paper on business cycles which emphasised the potentially “catastrophic” non-linear dynamic that could arise from a combination of an economic downturn and changed savings patterns arising from the wealth effect.

The reason this stuff is ignored by the mainstream is because the mainstream can’t handle non-linearity.

So they prefer to have models that are “precisely” ridiculous rather than imprecisely realistic.

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  1. November 27, 2015 at 9:52 am

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