A second excerpt of my forthcoming book Forecast is now online at Bloomberg. It's a greatly condensed text assembled from various parts of the book. One interesting exchange in the comments from
yesterday's excerpt:
to which one Jack Harllee replied...
This response fairly well captures my own position. I argue in the book that the economics profession has been fixated far too strongly on equilibrium models, and much of the time simply assumes the stability of such equilibria without any justification. I certainly don't claim that economists have never considered unstable equilibria (or examined models with multiple equilibria). But any examination of the stability of an equilibrium demands some analysis of dynamics of the system
away from equilibrium, and this has not (to say the least) been a strong focus of economic theory.
Very interesting
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