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 The science of economics is concerned with making predictions. Politicians and managers want to know the outcome of their policies and the risks they run. Also, economists use models that give the impression of the results being correct and then make decisions with sometimes disastrous consequences. Gradually it becomes clear that the individual behavior and the sum of it - the market - is unpredictable and therefore risks arising from market developments are unpredictable as well. This insight hardly gets through to the financial sector. Source: Het Financieele Dagblad, Weekend Essay on Saturday by Willem Landman, 16 February, 2013 |
