The Lucas Critique of the Economy

4min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

The Austrian economics approach which is Hayekian and Lou von Mises are the main proponents of it, most famous proponents. What they're arguing is that the knowledge of ourselves is in our brains. It's not a set of mathematical equations that lets you predict what prices are going to be in advance. In other words, if you had a perfect model, you would still have to run the model to figure out what’s going to happen.

Neuroscientist and author Erik Hoel talks about his book, The World Behind the World, with EconTalk's Russ Roberts. Is it possible to reconcile the seemingly subjective inner world of human experience with the seemingly objective outer world of observation, measurement, and science? Despite the promise of neuroscience, Hoel argues that this reconciliation is surprisingly difficult. Join Hoel and Roberts for a wide-ranging exploration of what it means to be human and the limits of science in helping us understand who we are.