Bretton Woods, Past and Present: 3. Models in Economics

The transcript discusses the importance of models in economics, emphasizing the need for models to predict accurately and the significance of assumptions. It highlights the role of models as tools for clarity and research, using Keynes' theories as examples. The characteristics of a good model, including realism and parsimony, are explored, along with the limitations and progress in modeling.

What does the speaker mean by saying a model should initiate a process of iteration?

How does the speaker view the relationship between models and reality?

What critique does the speaker offer regarding the modeling style in economics?