I’ve a short question on economics, as I’ve never really studied the subject. Descriptions of economic activity seem that they must fundamentally be non-linear in nature. However all the equations and descriptions I’ve seen seem to be linear. Is that really the case? Are economists all playing with linear descriptions, which may actually be the case near equilibrium. But how often are economies near equilibrium? And when they are not, doesn’t that mean that in those times many if not most rules of thumb developed in times of equilibrium no longer hold true?

Who is saying things like this? What “school” of economics would or does admit to this sort of description?

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Filed under: Economics & Taxes • Mark O.

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