The whole essence of the econometric a priesthood is the idea that the bigger the sample, the more reliable the forecast. What i think view of that flaw is that we don't have any more data because the process that created the data is different in the process that existed before. So there are a lot of areas in which we can do some forecasting. For example, to morrow, when i'm looking out the window and i see a cloud, i can forecast the rain. Why? Because er, er, you know a rain. Forecasting doesn't is not in e complex domain. It depends how close iti to one day or two days. There's no mathematics on
Nassim Taleb, author of The Black Swan and Fooled by Randomness, talks with EconTalk host Russ Roberts about his latest thoughts on robustness, fragility, debt, insurance, uncertainty, exercise, moral hazard, knowledge, and the challenges of fame and fortune.