More of a social science
It is as much a science as any other study of a complex system. Meaning, yes, it is a science.
Economics can be deeply mathematical once you consider the game theory aspect, analysis etc.
It is as much a science as any other study of a complex system. Meaning, yes, it is a science.
Economics can be deeply mathematical once you consider the game theory aspect, analysis etc.
Ultimately modern structured products creation and sales is basically just like old-school used car sales. Put sawdust in the motor, roll back the odometer, and tell the customer that it was driven by a little old lady that only took it to church and to the supermarket. Caveat emptor.
That is a terrible misunderstanding of the 2008 financial crisis.
I don't understand this criticism. All sciences are based on models that lie somewhere between incomplete and utterly wrong, but still these models are in fact useful and provide value. Take for instance physics, and how in some applications gravity is still modelled as a constant acceleration of 9.8m/s^2 pointing down. Although that model is very wrong it still works well enough to be useful.
In general you must choose a model on some scale between “accurate but too complex to be useful” and “easy to use but too inaccurate”. In the middle, hopefully, lies some theory which is simple enough to use in analysis and accurate enough to have applications.
For example, you wouldn’t see a civil engineer design a bridge with quantum field theory. They would generally use a less accurate, incomplete model of materials physics. Something simple enough that they can parameterize and run simulations.
Science is there in order for us to understand the limitations of these theories. This is why you can still e.g. use Lewis diagrams and get work done. They didn’t become “not science” just because they are an incomplete model of how bonding works, but through scientific experiment we have an understanding of how useful the model is.