Theory And Curve Fitting

Source: Cobden Centre
by Dr. Frank Shostak

“By popular thinking, our knowledge of the world of economics is elusive – it is not possible to ascertain how the world of economics really works – hence it is held the criteria for the selection of a theory should be its predictive power. So long as the theory ‘works,’ it is regarded as a valid framework as far as the assessment of an economy is concerned. Once the theory breaks down, the search for a new theory begins.” (04/02/24)