]]>
Just to kick you off, I’d say it definitely relates to both of these posts.
]]>
Reminds me clearly on the description of economics given here – and why the determination to “make predictions” is a bit dodge. I see Barry Ritholz is also chatting on these things, I will be posting about that at some point!
And via the above post, I see that I compared economic forecasting to Tarot Card reading in 2009. I have now moved on to comparing devices of economic communication to tarot card reading. Obviously, I need to find more occult devices to improve my forecasting methods!
Note: This is neither a criticism of broad economics, or of the specific area of economic forecasting (seen as a way of synthesizing and communicating information). See how I view method in economics here.
]]>
The thing is, when I saw the first panel the first question that popped into my mind was “nominal or real dollars” – the amount I ask that, all day long, is ridiculous. These things are always best when they are relatively true …
]]>
Peak oil will be here any minute now…
]]>
(ht SMBC)
… and the difficulty humans have recognising them. Click through to xkcd for the, very worthwhile, rollover text.
]]>
Source (XKCD)
]]>
(Via SMBC)
Come on, revealed preferences are all you need. There is no way we’re going to make our own explicit value judgments!
]]>He shows that supply rises as price rises – and that is great. And given that the marginal cost is zero, this would give pretty awesome profits. However, it misses the point that we need a demand curve in order to determine price – and generally as price goes up demand goes down.
My solution. The firm should start buying and wasting power (generally on things that upset their employees) in order to increase demand!
Although, this might not be socially optimal if, ya know, we care about the welfare of the workers …
]]>