Stephen Monrad

I’ve decided that I’m unhappy with my Apple Pie World model.

Simplified the problem away.

I was attempting to drive out all the uncertainty and ambiguity in real economics. With all the ambiguity gone, what’s left is only a dry abstract framework. How the framework is specified determines its behavior. Boring.

Human limits are perhaps helpful.

I’m starting to think that our lack of rationality may actually have some benefits. If everyone knows everything and can change their behavior on a dime, odd things can happen. I think that part of what keeps real world economies functioning is inertia. People do what they did yesterday most of the time. A shock to the economy doesn’t cause huge reactions because most people don’t notice the shock straight away.