Well said. Today's world is simply more complex, and there are literally billions of moving parts. Using classical economics to try to predict actions of nations or even corporations isn't enough any more. The system is complex.
I myself was a pretty big Keynsian, but I see the importance of protectionism during certain circumstances. It's just not simple at all.
One thing implicit in your argument that I think is worth stating explicitly is that econometric models are basically blind to power and I think intentionally ignore the impacts that power (political, financial, physical) have on the ability to set prices, influence policy, and change markets.
Well said. Today's world is simply more complex, and there are literally billions of moving parts. Using classical economics to try to predict actions of nations or even corporations isn't enough any more. The system is complex.
I myself was a pretty big Keynsian, but I see the importance of protectionism during certain circumstances. It's just not simple at all.
One thing implicit in your argument that I think is worth stating explicitly is that econometric models are basically blind to power and I think intentionally ignore the impacts that power (political, financial, physical) have on the ability to set prices, influence policy, and change markets.