Bretton Woods, Past and Present: 2. Progress in Economics

The transcript discusses the complexity of defining progress in economics, emphasizing the need to understand rather than just predict economic phenomena. It highlights the importance of comparing current and past economic theories, avoiding simplistic assumptions, and learning from historical crises. The speaker critiques the trend of increasing complexity in economic models without practical success and stresses the need for empirical explanations and realistic assumptions.

What is a key precondition for progress in economics according to the speaker?

• Re-evaluating past progress

• Ignoring past progress

• Using complex mathematics

• Focusing solely on prediction

Why does the speaker emphasize understanding over prediction in economics?

• Prediction is easier to achieve

• Prediction is more important

• Understanding is irrelevant

• Understanding is broader than prediction

What does the speaker suggest about the use of mathematics in economic theories?

• It is irrelevant to economics

• It always leads to progress

• It complicates theories unnecessarily

• It simplifies economic models

What does the speaker hope for the future of economic theories?

• That they ignore past theories

• That they integrate macro and finance

• That they become more abstract

• That they focus solely on prediction

According to the speaker, what should be the criterion for progress in economics?

• Focusing on abstract models

• Increasing mathematical complexity

• Achieving empirical explanations

• Using simpler assumptions

What does the speaker identify as a problem with economic theories over the last 30 years?

• They lack empirical testing

• They focus too much on prediction

• They have become too simple

• They have become too abstract

What is the speaker's view on the assumptions used in economic models?

• They should be ignored

• They should be more complex

• They should be more realistic

• They should be less realistic