Eurosclerosis: Causation and Control

Abstract

Economists get elated but also most concerned when their models become tools of economic policy administered by governments and operated by bureaucrats and professional economists. Every model has its a priori setting and conditions, and if reality does not resemble the model, as it does in most cases, only ingenuity and dexterity of the policymakers can make it adapt for its purpose. Yet, this is not always the case. More often than not, the model fails due to either lapses of realism or overzealous actualization. Yet, despite these concerns, great economic truths and ideas have transformed the world with all the infirmities in dealing with reality.