> SA asked:
>
>> Have you heard of something called behavioral economics?
>
> Some time ago, I pointed on Pen-L to "behavioral economics"
> self-understanding of its relation to "mathematical finance".
>
> While at least acknowledging the fact of irrationality in financial
> markets, it mistakenly identifies the ontological ideas that have
> dominated physics since the 17th century with “science” per se.
I learned a lot from this post, and it's always a pleasure reading Keynes' prose, and your critique of behavioral economics is stimulating. But, for instance, one question behavioral economists are trying to answer right now is: If the government prints a lot of money, does that raise the odds of a bubble forming, cet. par.? Off the top of my head I don't remember what kinds of answers the literature has proposed so far, but there's a fully fledged research program trying to answer it.
Now, since I'm personally interested to know the answer to that question; and since you think behavioral economics is fatally flawed, can you point me to another research program that has a better literature seeking to answer the question: "if the government prints a lot of money, does that raise the odds of a bubble forming"?
SA