Andrew Haldane has outlined a vision for the future of economics in which both inductive and deductive methods come together in a process of “iterative learning”.

The Bank of England chief economist said many of the fragilities of earlier economic models could have been avoided if both empirical, inductive methods and theory-based, deductive methods worked together.

Macroeconomists have tended to favour the latter, notably in the dynamic stochastic general equilibrium (DSGE) models widely used