Math without Theory is useless: Sandeep Jaitly
Max Keiser asks Sandeep Jaitly about the Austrian School of Economics. Very nice clip. Max is trying, but he gets it wrong. Economics has nothing to do with psychology. There is a very definite line. The Austrians are not trying to reinvent Freud.
As Sandeep points out, all value extends from the human mind and no other school actually believes this. As such, their econometric models are completely meaningless. They are missing the initial input of their equations, which is unknown since that initial input is the subjective value that individuals assign to economic goods. This is why the mainstream always fails.
We have our Bernanke apologists on this site. They bicker and whine about us. They praise Bernanke for doing something to save us, though they have no idea what would have happened without Bernanke (making their defense of him meaningless.) What these apologists will not admit, however, is that all value extends from the human mind. Once they admit that, then they also must admit that Bernanke would have to know what is in every individual's mind in order to make the correct policy choices. Good luck with that, gentlemen.
David in Qatar