Lars P. Syll — Wren-Lewis Insults Medical Science

Medicine is to scientific discipline (biology) every bit world policy is to economics, that is, an application. Medicine based on evidence-based scientific discipline is relatively successful inwards diagnosis, etiology in addition to handling of disease. Public policy based on conventional macroeconomics is nada similar that inwards approach or outcomes. If in that place were an economical scientific discipline that proves itself relative to world policy, in that place would non last opposing political factions offering economical arguments to rationalize their conflicting positions.

If the scientific discipline were "decided" every bit claimed, the optimal policy would last demonstrable yesteryear theory in addition to confirmed yesteryear evidence. That is far from the case. For example, the key banking concern is charged chiefly with maintaining monetary stability. Janet Yellen, the quondam Fed chair, of late admitted that in that place is no satisfactory theory of inflation, then the key banking concern must move based on discretion rather than a rule. 

As a outcome in that place is seldom understanding alongside the commission or the economists it relies on regarding setting the policy rate. They brand an "informed decision" (guess) afterwards articulation research in addition to deliberation (although the commission to a greater extent than oftentimes than non follows the Pb of the chair). This is the ascendancy arrangement that purportedly sets the well-nigh of import ingredient inwards economical policy according to conventional economics. 

Given the dismal tape of the key banking concern continuously hitting its targeted policy charge per unit of measurement field too maintaining growth, cost stability in addition to sum utilization (even defined down) seriously questions the so-called scientific discipline behind the process. This is wizardry rather than science, prediction rather than forecasting.

Simon Wren-Lewis doesn't empathize this?

If medicine were similar economics, seeking medical handling would last similar going to a witchdoctor.

Lars P. Syll’s Blog
Wren-Lewis insults medical science
Lars P. Syll | Professor, Malmo University