On the irreversibility of time and economics

8 February, 2013 at 19:24 | Posted in Economics, Statistics & Econometrics | 2 Comments

 

As yours truly has argued – e.g. here, here and here – this is an extremely important issue for everyone wanting to understand what are the deep fundamental flaws of mainstream neoclassical economics.

Added 9/2: And as an almost immediate testimony to how wrong things may go when you do not understand the importance of making the distinction between real, non-ergodic, time averages and unreal hypothetical, ergodic , ensemble averages,  Noah Smith yesterday posted a piece defending the Efficient Market Hypothesis (falsely intimating it being a popular target of critique only among “lay critics of the econ profession”) basically referring  to the same Paul Samuelson that Ole Peters so rightly criticises in his lecture.

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