Limits of Economic Knowledge
Economist Ed Leamer discusses the limits of economic knowledge and the overstatement of precision in understanding the real world. He highlights the need to acknowledge the "we don't know" factor in complex human systems, such as mortgage-backed securities. Leamer suggests using a third component in rating securities and emphasizes the importance of admitting what we don't know in the field of economics.In this clip
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EconTalk
Ed Leamer on Macroeconomic Patterns and Stories
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