they say 'in our view, the paradigm of neoclassical economics appears flawed', because of the current 'crisis'.
now, that is a new, deep, scientific conclusion. i never had thought of that before, and dought anyone else has either. this is what scientists can bring to the problem.
complexity theory is likely part (50%?) of the reason for the crisis; its what developed the derivatives/hedging strategies. half the baggage of statistical mechanics was carried over to investment banks, and you might not have gotten the huge losses now without those tools (which are derived to study large scale correlations). (i guess the great depression happened without complexity theory).
i actually do agree that complexity theory is a fairly good descriptor of the economy (or biology, etc.) however its largely descriptive and inconclusive; desighing an economuy isn't like designing a semiconductor
they call for a manghattan project; i gather that is because all the wall street physicists need a new job; i have confidence they cvan really fix it now. but, as they say, only if they are the Top scientists, and of course well compensated.
--- On Fri, 12/12/08, Michael H Goldhaber <[log in to unmask]> wrote:
> From: Michael H Goldhaber <[log in to unmask]>
> Subject: Re: Edge 269: Can Science Help Solve The Economic Crisis?
> To: [log in to unmask]
> Date: Friday, December 12, 2008, 8:34 PM
> I think it's nuts to suggest that economics can ever be
> a rigorous science, as these people do. Claiming that
> "complexity theory" can do the trick is just
> replacing one pseudo-science with another. Any economy rests
> on human choices and these cannot be subsumed into a
> science, because people can always respond to the would-be
> science's "results" by taking them into
> account and thus rejecting them.
> On Dec 12, 2008, at 10:19 AM, Michael Balter wrote:
> > ---------- Forwarded message ----------
> > From: Edge <[log in to unmask]>
> > Date: Fri, Dec 12, 2008 at 11:20 AM
> > Subject: Edge 269: Can Science Help Solve The Economic
> > To: Michael Balter <[log in to unmask]>
> > Edge 269 - December 11, 2008
> > (13,000 words)
> > http://www.edge.org/
> > This online EDGE edition with streaming video is
> available at:
> > http://www.edge.org/documents/archive/edge269.html
> > ----------------------------------------------------