Central banking model for neither gods nor monkeys

According to this article by Paul de Grauwe, published Wednesday 26 July by the Financial Times, the first serious attempt to put central banking on a sound scientific basis failed miserably.

Forecasting models of the economy developed in the 60's and 70's quickly turned out to produce unreliable predictions, it says.

"New models were built in which a new assumption was introduced. Individual agents now were assumed to understand the complexity of the world in which they live and to continuousl

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