DANGER OF EXCLUSIVITY IN ECONOMETRICS Economists, like all methodologists, extra

http://economistsview.typepad.com/economistsview/2012/01/how-to-save-economics.htmlTHE DANGER OF EXCLUSIVITY IN ECONOMETRICS

Economists, like all methodologists, extrapolate the conclusions they draw from their methods beyond the scope of their methods. (See Kahneman.)

Psychologists place extraordinary emphasis on the meaning of emotional stimuli, rather than the outcomes that would be achieved by training emotions to favor more beneficial outcomes in the material world. Cognitive psychologists reverse this preference.

Liberals extrapolate their bias for nesting and care-taking, and their preference for consensus, to the ability of humans to plan, and cooperate on the scale of a state or economy.

We are all prisoners of our methods and biases, and our only the mastery of the methods of multiple fields of inquiry makes us critical enough of our abilities.

The Austrians are largely correct in their analysis of micro, as well as the impact of modern macro. We do not really know if the various permutations of MMT will work or not. But it is abundantly clear that modern macro applies only to small homogenous societies. And in diverse heterogeneous societies, micro and social behaviors are more influential than the power of monetary and fiscal policy to compete with.

Humans act consistently over time. Humas vary greatly. And the less on of the greeks, and the mandate in western aristocratic tradition, is the ever present and inescapable frailty of human reasoning, and the consequential warning against human hubris, the only solution to which is competition and the balance of power demonstrated by commercial and military success.

In other words – actions are scientific and theories are not.