Economics has been woeful at predicting the future. We live in a world of radical uncertainty, he says. When anything significant happens, we don't predict it. Economics is like physics - equations and data are not enough to explain reality. The real issue with economics is that people take things as if they can be measured.
John Kay and Mervyn King talk about their book, Radical Uncertainty, with EconTalk host Russ Roberts. This is a wide-ranging discussion based on the book looking at rationality, decision-making under uncertainty, and the economists' view of the world.