Who needs theory when you have so much information? But this is categorically the wrong attitude to take toward forecasting, especially in a field like economics where the data is so noisy.
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In science, progress is possible. In fact, if one believes in Bayes theorem, scientific progress is inevitable as predictions are made and as beliefs are tested and refined.
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Under Bayes theorem, no theory is perfect. Rather, it is a work in progress, always subject to further refinement and testing.
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...the ratings agencies problem was in being unable or uninterested in appreciating the distinction between risk and uncertainty.
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Distinguishing the signal from the noise requires both scientific knowledge and self-knowledge: the serenity to accept the things we cannot predict, the courage to predict the things we can, and the wisdom to know the difference.
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By playing games you can artificially speed up your learning curve to develop the right kind of thought processes.
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Were not that much smarter than we used to be, even though we have much more information - and that means the real skill now is learning how to pick out the useful information from all this noise.
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Distinguishing the signal from the noise requires both scientific knowledge and self-knowledge.
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First of all, I think its odd that people who cover politics wouldnt have any political views.
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