Uncertainty Principle of Economics & Economic Engineering


Related Old Post

Uncertainty Principle of Economics makes the “Economic Engineering” a more exciting and complex art. The imagined example of economic engineering in stock market in this old post could merely be called “engineering”. It is the most primitive market operation. But such a primitive economic engineering has been applied in the most common market operations we can see in our daily life for a long time. For examples, when oil price is predicted to go up in a very scientific and convincing way, more oil producers might increase their productions and end up with too much oil on the market with lower prices later. A false alarm of economy going down could trigger a large-scale layoff and finally drag down the economy as predicted. When big players are convinced by the economic science that the market will collapse, they will probably try everything possible to boost the market so that they could get out before the collapse.

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This entry was posted in Letters to USA, People's Diplomacy, Political Economy of Democracy, Political Economy of Knowledge, Innovation, and Human Development. Bookmark the permalink.

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