Chapter
Red Flags in Economic Models
1:01:46 - 1:06:50 (05:04)
A person with a scientific or engineering background may find red flags in economic models. One example of high inflation and high unemployment can refute the idea of a model, such as the Keynesian model.
Clips
The Keynesian model of central banking, based on the idea that aggregate expenditure can control inflation and unemployment, has been disproved by historical evidence of high inflation and high unemployment happening simultaneously.
1:01:46 - 1:05:19 (03:33)
Summary
The Keynesian model of central banking, based on the idea that aggregate expenditure can control inflation and unemployment, has been disproved by historical evidence of high inflation and high unemployment happening simultaneously. Printing more money and increasing aggregate spending does not necessarily lead to a decrease in unemployment, and the model is flawed.
ChapterRed Flags in Economic Models
Episode#284 – Saifedean Ammous: Bitcoin, Anarchy, and Austrian Economics
PodcastLex Fridman Podcast
This podcast discusses why engineers may have a hard time understanding economics, and how the scientific method ingrained in their thinking may clash with mainstream economic theories.
1:05:19 - 1:06:50 (01:31)
Summary
This podcast discusses why engineers may have a hard time understanding economics, and how the scientific method ingrained in their thinking may clash with mainstream economic theories.