Will Economics Finally Get Its Paradigm Shift? - HBR - 0 views
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A Kuhnian paradigm is a set of assumptions that allows scientists in a particular field to avoid time-wasting arguments over the basics and spend their days solving small but useful puzzles
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Scientific assumptions are never perfect mirrors of reality, though (“all models are wrong; but some are useful“). When evidence piles up that contradicts the paradigm, a science sometimes needs to go through the painful process of a paradigm shift.
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Financial economics adopted its own, narrower paradigm, in which the starting point was that the prices prevailing on financial markets were more or less correct (a belief that in those days went under the name Efficient Market Hypothesis
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