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Alvin Roth, Andrei Shleifer, asset-backed security, bank run, barriers to entry, Basel III, Berlin Wall, Bernie Madoff, Bernie Sanders, Black Swan, blue-collar work, Bretton Woods, Brownian motion, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, complexity theory, constrained optimization, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, dark matter, David Brooks, David Graeber, debt deflation, deindustrialization, Edward Glaeser, Eugene Fama: efficient market hypothesis, experimental economics, facts on the ground, Fall of the Berlin Wall, financial deregulation, financial innovation, Flash crash, full employment, George Akerlof, Goldman Sachs: Vampire Squid, Hernando de Soto, housing crisis, Hyman Minsky, illegal immigration, income inequality, incomplete markets, information asymmetry, invisible hand, Jean Tirole, joint-stock company, Kenneth Arrow, Kenneth Rogoff, knowledge economy, l'esprit de l'escalier, labor-force participation, liberal capitalism, liquidity trap, loose coupling, manufacturing employment, market clearing, market design, market fundamentalism, Martin Wolf, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, Naomi Klein, Nash equilibrium, night-watchman state, Northern Rock, Occupy movement, offshore financial centre, oil shock, Pareto efficiency, Paul Samuelson, payday loans, Philip Mirowski, Ponzi scheme, precariat, prediction markets, price mechanism, profit motive, quantitative easing, race to the bottom, random walk, rent-seeking, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, school choice, sealed-bid auction, Silicon Valley, South Sea Bubble, Steven Levy, technoutopianism, The Chicago School, The Great Moderation, the map is not the territory, The Myth of the Rational Market, the scientific method, The Wisdom of Crowds, theory of mind, Thomas Kuhn: the structure of scientific revolutions, Thorstein Veblen, Tobin tax, too big to fail, transaction costs, Vilfredo Pareto, War on Poverty, Washington Consensus, We are the 99%, working poor
Kaletsky, Anatole. Capitalism 4.0 (New York: Public Affairs Press, 2010). Kaptur, Devesh. “Academics Have More to Declare than Their Genius,” Financial Times, June 24, 2009. Kates, Steven. The Global Financial Crisis: What Have We Learnt? (Cheltenham, U.K.: Elgar, 2011). Kay, John. “Economics: Rituals of Rigor,” Financial Times, August 25, 2011. Kay, John. “The Map Is Not the Territory,” October 4, 2011, at www.johnkay.com/2011/10/04/the-map-is-not-the-territory-an-essay-on-the-state-of-economics. Kay, John. “Why Economists Stubbornly Stick to their Guns,” Financial Times, April 15, 2011. Keen, Steve. “Like a Dog Walking on Its Hind Legs: Krugman’s Minsky Model,” March 4, 2011, at www.debunkingeconomics.com. Keynes, John Maynard. The General Theory of Employment, Interest and Money (New York: Harcourt Brace, 1964 ).
One More Red Nightmare 1 For those with access to a film library, I would suggest The Descent (2006); or for something closer to the current topic, Adam Curtis’s The Trap (2007). Just when I had begun feeling proud of my little trope, a friend pointed me to Wendy Brown’s “American Nightmare: Neoliberalism, Neoconservatism, and De-democratization.” Originality is an overrated virtue. 2 Video recordings of much of the proceedings are available on the Web at www.ineteconomics.org. 3 Kay, “The Map Is Not the Territory.” 4 Tankersley and Hirsh, “Neo–Voodoo Economics.” 5 Tiago Mata, at History of Economics Playground, at http://historyofeconomics.wordpress.com/2011/04/10/inet-bw-of-history-repeating/#more-2002. 6 Stephan Richter, www.theglobalist.com/storyid.aspx?StoryId=9096. See also the account by Yves Smith at www.nakedcapitalism.com/2011/04/page/3, which suggests that the video available at the INET website may have been redacted.
Theories of imperfect and asymmetric information in markets had undermined every one of the efficient market doctrines, even before they became fashionable” (Stiglitz, “The Non-existent Hand”). For a number of examples on the right, see the Chicago interviews of John Cassidy (“Rational Irrationality”) or Taylor, “How Government Created the Financial Crisis.” History is always the first casualty in any economics dispute. 6 See www.britac.ac.uk/events/archive/forum-economy.cfm. The Queen’s question is also discussed in Kay, “The Map Is Not the Territory.” 7 See, for instance, Jane Smiley’s novel Moo, or Olivier Assayas’s film Summer Hours. 8 Sorman, “The Free Marketers Strike Back.” 9 Thoma, “What Caused the Financial Crisis?” 10 Here is the economist David Levine: “I was reading your article ‘How Did Economists Get It So Wrong.’ Who are these economists who got it so wrong? Speak for yourself kemo sabe. And since you got it wrong—why should we believe your discredited theories?”
Alfred Russel Wallace, banks create money, basic income, Buckminster Fuller, collective bargaining, computerized trading, creative destruction, David Ricardo: comparative advantage, declining real wages, deindustrialization, diversified portfolio, en.wikipedia.org, Fractional reserve banking, full employment, hydraulic fracturing, income inequality, Jaron Lanier, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, land reform, Mark Zuckerberg, Network effects, oil shale / tar sands, Paul Samuelson, profit maximization, quantitative easing, rent-seeking, Ronald Coase, Ronald Reagan, Silicon Valley, sovereign wealth fund, the map is not the territory, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, transaction costs, Tyler Cowen: Great Stagnation, Upton Sinclair, Vilfredo Pareto, wealth creators, winner-take-all economy
Perhaps one day I’ll finish the game, or perhaps someone else will. (I invite game developers to contact me.) But the book I started is finished and in your hands. IT’S IMPORTANT TO DISTINGUISH between economics and our economy. The terms are often conflated but refer to different things. Economics is a body of thought; our economy is a system that functions in the real world. As has been said in other contexts, the map is not the territory. Our economic system is real terrain, and economics is a picture of it, necessarily inaccurate and incomplete. Much has been written about the deficiencies of contemporary economics. I’m more concerned about the defects of our actual economy. But to understand those defects—and to fix them—we must start with a sufficiently wide lens, which is why conventional economics is a problem.
Rationality: From AI to Zombies by Eliezer Yudkowsky
Albert Einstein, Alfred Russel Wallace, anthropic principle, anti-pattern, anti-work, Arthur Eddington, artificial general intelligence, availability heuristic, Bayesian statistics, Berlin Wall, Build a better mousetrap, Cass Sunstein, cellular automata, cognitive bias, cognitive dissonance, correlation does not imply causation, cosmological constant, creative destruction, Daniel Kahneman / Amos Tversky, dematerialisation, discovery of DNA, Douglas Hofstadter, Drosophila, effective altruism, experimental subject, Extropian, friendly AI, fundamental attribution error, Gödel, Escher, Bach, hindsight bias, index card, index fund, Isaac Newton, John Conway, John von Neumann, Long Term Capital Management, Louis Pasteur, mental accounting, meta analysis, meta-analysis, money market fund, Nash equilibrium, Necker cube, NP-complete, P = NP, pattern recognition, Paul Graham, Peter Thiel, Pierre-Simon Laplace, placebo effect, planetary scale, prediction markets, random walk, Ray Kurzweil, reversible computing, Richard Feynman, Richard Feynman, risk tolerance, Rubik’s Cube, Saturday Night Live, Schrödinger's Cat, scientific mainstream, sensible shoes, Silicon Valley, Silicon Valley startup, Singularitarianism, Solar eclipse in 1919, speech recognition, statistical model, Steven Pinker, strong AI, technological singularity, The Bell Curve by Richard Herrnstein and Charles Murray, the map is not the territory, the scientific method, Turing complete, Turing machine, ultimatum game, X Prize, Y Combinator, zero-sum game
But your true understanding is measured by your ability to describe what you’re doing and why, without using that word or any of its synonyms. * 169 Fallacies of Compression “The map is not the territory,” as the saying goes. The only life-size, atomically detailed, 100% accurate map of California is California. But California has important regularities, such as the shape of its highways, that can be described using vastly less information—not to mention vastly less physical material—than it would take to describe every atom within the state borders. Hence the other saying: “The map is not the territory, but you can’t fold up the territory and put it in your glove compartment.” A paper map of California, at a scale of 10 kilometers to 1 centimeter (a million to one), doesn’t have room to show the distinct position of two fallen leaves lying a centimeter apart on the sidewalk.
A computer modeling the aerodynamics of a 747 may not contain a single token, a single bit of RAM, that represents a quark. So is the 747 made of something other than quarks? No, you’re just modeling it with representational elements that do not have a one-to-one correspondence with the quarks of the 747. The map is not the territory. Why not model the 747 with a chromodynamic representation? Because then it would take a gazillion years to get any answers out of the model. Also we could not store the model on all the memory on all the computers in the world, as of 2008. As the saying goes, “The map is not the territory, but you can’t fold up the territory and put it in your glove compartment.” Sometimes you need a smaller map to fit in a more cramped glove compartment—but this does not change the territory. The scale of a map is not a fact about the territory, it’s a fact about the map.
Given the seeming absolute stability and universality of physical laws, it’s possible that never, in the whole history of the universe, has any particle exceeded the local lightspeed limit. That is, the lightspeed limit may be, not just true 99% of the time, or 99.9999% of the time, or (1 - 1/googolplex) of the time, but simply always and absolutely true. But whether we can ever have absolute confidence in the lightspeed limit is a whole ’nother question. The map is not the territory. It may be entirely and wholly true that a student plagiarized their assignment, but whether you have any knowledge of this fact at all—let alone absolute confidence in the belief—is a separate issue. If you flip a coin and then don’t look at it, it may be completely true that the coin is showing heads, and you may be completely unsure of whether the coin is showing heads or tails. A degree of uncertainty is not the same as a degree of truth or a frequency of occurrence.
Sure, expat cafés and card games have their place, but there’s more to it than just that, and a lot of the other stuff involves just diving into the unknown — accepting an invitation to a wedding in some small town where you don’t speak the language, or just wandering around the streets and alleys and talking to whomever strikes up a conversation with you, and so on. I kind of like spending a lot of time on my own, so it has been a challenge going out and doing stuff with local people. — TOM BOURGUIGON, 25, GRAPHIC DESIGNER, OHIO ———— The aphorism “The map is not the territory” looms ever larger as I get lost in the intricacies of a culture, giving up any hope of understanding, while love and appreciation between us grows. — ELDON HAINES, 70, NASA PLANETARY SCIENTIST, OREGON VAGABONDING PROFILE John Ledyard He saw that if anyone appeared insane it was not the island cannibals or the grease-encrusted Aleuts or the stony-hearted Tartars, but the one who visited them.
The Year Without Pants: Wordpress.com and the Future of Work by Scott Berkun
barriers to entry, blue-collar work, Broken windows theory, en.wikipedia.org, Firefox, future of work, Google Hangouts, Jane Jacobs, job satisfaction, Lean Startup, lone genius, Mark Zuckerberg, minimum viable product, remote working, Results Only Work Environment, Richard Stallman, Seaside, Florida, side project, Silicon Valley, six sigma, Skype, stealth mode startup, Steve Jobs, The Death and Life of Great American Cities, the map is not the territory, Tony Hsieh, trade route, zero-sum game
I was comfortable flipping the switch on a possible runaway train if I knew I had another switch a mile up the track to shut things down. The prevailing attitude at Automattic was that any big project is simply a series of smaller ones, and I liked this. It avoids the stupid things that happen on projects by never allowing you to fall in love with your grand plans. As the joke goes, if you don't have a plan, then you never worry if your plan is wrong. And as the pithy saying goes, the map is not the territory. If you make an elaborate map, you forget the world may change for the worse while you're staring at your beautiful little map. People drive off cliffs and into lakes because their GPS device told them there was a road, but there wasn't. Without the GPS, that can't happen. In project terms, if you make only small maps, of, say, the next two weeks, you never run the risk of your map being very wrong, and you learn more from the present since it has your full attention.
The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change by Stephen R. Covey
agricultural Revolution, Albert Einstein, Berlin Wall, British Empire, Fall of the Berlin Wall, financial independence, knowledge worker, the map is not the territory, Thomas Kuhn: the structure of scientific revolutions, zero-sum game
It was originally a scientific term, and is more commonly used today to mean a model, theory, perception, assumption, or frame of reference. In the more general sense, it's the way we "see" the world - not in terms of our visual sense of sight, but in terms of perceiving, understanding, interpreting. For our purposes, a simple way to understand paradigms is to see them as maps. We all know that "the map is not the territory." A map is simply an explanation of certain aspects of the territory. That's exactly what a paradigm is. It is a theory, an explanation, or model of something else. Suppose you wanted to arrive at a specific location in central Chicago. A street map of the city would be a great help to you in reaching your destination. But suppose you were given the wrong map. Through a printing error, the map labeled "Chicago" was actually a map of Detroit.
Capitalism: Money, Morals and Markets by John Plender
activist fund / activist shareholder / activist investor, Andrei Shleifer, asset-backed security, bank run, Berlin Wall, Big bang: deregulation of the City of London, Black Swan, bonus culture, Bretton Woods, business climate, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collapse of Lehman Brothers, collective bargaining, computer age, Corn Laws, corporate governance, creative destruction, credit crunch, Credit Default Swap, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, discovery of the americas, diversification, Eugene Fama: efficient market hypothesis, eurozone crisis, failed state, Fall of the Berlin Wall, fiat currency, financial innovation, financial intermediation, Fractional reserve banking, full employment, God and Mammon, Gordon Gekko, greed is good, Hyman Minsky, income inequality, inflation targeting, information asymmetry, invention of the wheel, invisible hand, Isaac Newton, James Watt: steam engine, Johann Wolfgang von Goethe, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, joint-stock company, Joseph Schumpeter, labour market flexibility, liberal capitalism, light touch regulation, London Interbank Offered Rate, London Whale, Long Term Capital Management, manufacturing employment, Mark Zuckerberg, market bubble, market fundamentalism, mass immigration, means of production, Menlo Park, money market fund, moral hazard, moveable type in China, Myron Scholes, Nick Leeson, Northern Rock, Occupy movement, offshore financial centre, paradox of thrift, Paul Samuelson, Plutocrats, plutocrats, price stability, principal–agent problem, profit motive, quantitative easing, railway mania, regulatory arbitrage, Richard Thaler, rising living standards, risk-adjusted returns, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, shareholder value, short selling, Silicon Valley, South Sea Bubble, spice trade, Steve Jobs, technology bubble, The Chicago School, The Great Moderation, the map is not the territory, The Wealth of Nations by Adam Smith, Thorstein Veblen, time value of money, too big to fail, tulip mania, Upton Sinclair, Veblen good, We are the 99%, Wolfgang Streeck, zero-sum game
In my columns at the FT before the credit crunch of 2007, I elaborated these arguments while highlighting excessive leverage in the system, the decline in bank lending standards and the risks inherent in the fast-growing shadow banking system. I did not, of course, accurately predict the timing of the bursting of the bubble. 88 ‘Expectations of Returns and Expected Returns’, 2012, http://www.hbs.edu/faculty/ Publication%20Files/expectedreturns20121020_00760bc1-693c-4b4f-b635-ded0e540e78c.pdf 89 Ibid. 90 http://www.economist.com/node/14165405 91 http://www.johnkay.com/2011/10/04/the-map-is-not-the-territory-an-essay-on-thestate-of-economics 92 Speech to the annual conference of the Institute for New Economic Thinking, quoted by Anatole Kaletsky in the International New York Times, April 2014. 93 Stabilizing an Unstable Economy, Yale University Press, 1986. 94 The Time of My Life, Penguin Books, 1990. 95 The trade-to-GDP ratio is the economy’s total trade of goods and services (exports plus imports) divided by GDP. 96 Politics, Book 7, Part 9, http://classics.mit.edu/Aristotle/politics.7.seven.html 97 http://classics.mit.edu/Plato/laws.html 98 Quote from Jerry Z.
Pinpoint: How GPS Is Changing Our World by Greg Milner
Ayatollah Khomeini, British Empire, creative destruction, data acquisition, Dava Sobel, digital map, Edmond Halley, Eratosthenes, experimental subject, Flash crash, friendly fire, Hedy Lamarr / George Antheil, Internet of things, Isaac Newton, John Harrison: Longitude, Kevin Kelly, land tenure, lone genius, Mars Rover, Mercator projection, place-making, polynesian navigation, precision agriculture, race to the bottom, Silicon Valley, Silicon Valley startup, skunkworks, smart grid, the map is not the territory
And what are scientists if not rats in a maze of inquiry, assembling knowledge and testing it against the observable environment? Science produces “a map and a picture of reality,” nothing more or less. “If it were to present reality in its whole concreteness,” Tolman wrote in 1932, “science would not be a map but a complete replica of reality. And then it would lose its usefulness.” Perhaps Tolman was influenced by Alfred Korzybski’s dictum, issued a year earlier: “The map is not the territory.” Even the most comprehensive cognitive map is not the world, which is always mediated by our perceptions of it. There is no escaping the maze. Beginning in the early 1970s, Tolman’s cognitive map concept experienced a renaissance, adopted by experimental and developmental psychologists, geographers, urban planners, architects, and anyone interested in wayfinding. (Thomas Gladwin used it when discussing Carolinian navigators’ etak system.)
Street Smart: The Rise of Cities and the Fall of Cars by Samuel I. Schwartz
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, active transport: walking or cycling, Affordable Care Act / Obamacare, American Society of Civil Engineers: Report Card, autonomous vehicles, car-free, City Beautiful movement, collaborative consumption, congestion charging, crowdsourcing, desegregation, Enrique Peñalosa, Ford paid five dollars a day, Frederick Winslow Taylor, if you build it, they will come, Induced demand, intermodal, invention of the wheel, lake wobegon effect, Loma Prieta earthquake, Lyft, Masdar, megacity, meta analysis, meta-analysis, moral hazard, Nate Silver, oil shock, Productivity paradox, Ralph Nader, rent control, ride hailing / ride sharing, Rosa Parks, self-driving car, skinny streets, smart cities, smart grid, smart transportation, the built environment, the map is not the territory, transportation-network company, Uber and Lyft, Uber for X, Unsafe at Any Speed, urban decay, urban planning, urban renewal, walkable city, Wall-E, white flight, white picket fence, Works Progress Administration, Yogi Berra, Zipcar
All those successful test drives have been performed using a dedicated vehicle that preceded the autonomous car on the route in question, uploading every physical object on that route into the car’s memory immediately before the journey. This isn’t quite as big a con job as a mentalist who has confederates checking out marks before a performance, but neither is it a system that can be scaled up for real-world use. Remember: we’re talking not just roads, but driveways, parking lots, ferry terminals, and basically anywhere a car can already travel. Then there’s the uncomfortable reality that the map is not the territory. No matter how frequently it is updated, no mapping software can keep up with every new lane marking, or pothole, or construction site, or utility truck blocking a road. As I write this, most street markings in the Northeast are covered by snow and ice, and snow banks often require driving illegally into lanes reserved for oncoming traffic. (By the way, who gets the ticket if a driverless car breaks a rule and how does it know to pull over for a cop?)
Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate Raworth
3D printing, Asian financial crisis, bank run, basic income, battle of ideas, Berlin Wall, bitcoin, blockchain, Branko Milanovic, Bretton Woods, Buckminster Fuller, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, choice architecture, clean water, cognitive bias, collapse of Lehman Brothers, complexity theory, creative destruction, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, dematerialisation, Douglas Engelbart, Douglas Engelbart, en.wikipedia.org, energy transition, Erik Brynjolfsson, ethereum blockchain, Eugene Fama: efficient market hypothesis, experimental economics, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, Financial Instability Hypothesis, full employment, global supply chain, global village, Henri Poincaré, hiring and firing, Howard Zinn, Hyman Minsky, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of writing, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, land reform, land value tax, Landlord’s Game, loss aversion, low skilled workers, M-Pesa, Mahatma Gandhi, market fundamentalism, Martin Wolf, means of production, megacity, mobile money, Mont Pelerin Society, Myron Scholes, neoliberal agenda, Network effects, Occupy movement, off grid, offshore financial centre, oil shale / tar sands, out of africa, Paul Samuelson, peer-to-peer, planetary scale, price mechanism, quantitative easing, randomized controlled trial, Richard Thaler, Ronald Reagan, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Simon Kuznets, smart cities, smart meter, South Sea Bubble, statistical model, Steve Ballmer, The Chicago School, The Great Moderation, the map is not the territory, the market place, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, Torches of Freedom, trickle-down economics, ultimatum game, universal basic income, Upton Sinclair, Vilfredo Pareto, wikimedia commons
Coming up with his groundbreaking theory in the 1930s was, he admitted, ‘a struggle of escape from habitual modes of thought and expression … The difficulty lies not in the new ideas, but in the old ones which ramify, for those of us brought up as most of us have been, into every corner of our minds.’38 The possibility of shaking off old mental models is enticing, but the quest for new ones comes with caveats. First, always remember that ‘the map is not the territory’, as the philosopher Alfred Korzybski put it: every model can only ever be a model, a necessary simplification of the world, and one that should never be mistaken for the real thing. Second, there is no correct pre-analytic vision, true paradigm or perfect frame out there to be discovered. In the deft words of the statistician George Box, ‘All models are wrong, but some are useful.’39 Rethinking economics is not about finding the correct one (because it doesn’t exist), it’s about choosing or creating one that best serves our purpose – reflecting the context we face, the values we hold, and the aims we have.
The End of Theory: Financial Crises, the Failure of Economics, and the Sweep of Human Interaction by Richard Bookstaber
asset allocation, bank run, bitcoin, butterfly effect, capital asset pricing model, cellular automata, collateralized debt obligation, conceptual framework, constrained optimization, Craig Reynolds: boids flock, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, dark matter, disintermediation, Edward Lorenz: Chaos theory, epigenetics, feminist movement, financial innovation, fixed income, Flash crash, Henri Poincaré, information asymmetry, invisible hand, Isaac Newton, John Conway, John Meriwether, John von Neumann, Joseph Schumpeter, Long Term Capital Management, margin call, market clearing, market microstructure, money market fund, Paul Samuelson, Pierre-Simon Laplace, Piper Alpha, Ponzi scheme, quantitative trading / quantitative ﬁnance, railway mania, Ralph Waldo Emerson, Richard Feynman, Richard Feynman, risk/return, Saturday Night Live, self-driving car, sovereign wealth fund, the map is not the territory, The Predators' Ball, the scientific method, Thomas Kuhn: the structure of scientific revolutions, too big to fail, transaction costs, tulip mania, Turing machine, Turing test, yield curve
London: Macmillan. ———. 1918. Elementary Lessons in Logic: Deductive and Inductive with Copious Questions and Examples, and a Vocabulary of Logical Terms. New York: Macmillan. Jevons, William Stanley, and H. S. Foxwell. 1884. Investigations in Currency and Finance. London: Macmillan. Kahneman, Daniel. 2011. Thinking, Fast and Slow. New York: Farrar, Straus and Giroux. Kay, John. 2012. “The Map Is Not the Territory: Models, Scientists, and the State of Macroeconomics.” Critical Review 24, no. 1: 87–99. http://dx.doi.org/10.1080/08913811.2012.684476. Keynes, John Maynard. 1936. The General Theory of Employment, Interest, and Money. London: Harcourt Brace Jovanovich. ———. 1937. “The General Theory of Employment.” Quarterly Journal of Economics 51, no. 2: 209–23. ———. 1938. Letter to Harrod. 4 July.
Gaming the Vote: Why Elections Aren't Fair (And What We Can Do About It) by William Poundstone
affirmative action, Albert Einstein, Debian, desegregation, Donald Trump, en.wikipedia.org, Everything should be made as simple as possible, global village, guest worker program, hiring and firing, illegal immigration, invisible hand, jimmy wales, John Nash: game theory, John von Neumann, Kenneth Arrow, manufacturing employment, Nash equilibrium, Paul Samuelson, Pierre-Simon Laplace, prisoner's dilemma, Ralph Nader, RAND corporation, Ronald Reagan, Silicon Valley, slashdot, the map is not the territory, Thomas Bayes, transcontinental railway, Unsafe at Any Speed, Y2K
This belief makes it easy to be optimistic about democracy. Voting is then a way of channeling the public will. The many different ways of designing ballots and tallying votes can be thought of as competing road maps of the same region. Though different in superficial ways, all show the same tenitory. Because of that, it shouldn't matter which map (voting system) we use. All are going to get us where we need to go. We all know that the map is not the territory. What if there were no territory--only maps? Arrow's theorem says that there are situations where the "will of the people" is ill-defined, where rational people are collectively irrational. A decisive voting system will come up with a winner, but that winner may differ from the winner decided under another voting system that also sounds fair and reasonable. There may be no unique democratic outcome. 55 GAMING THE VOTE Is there any way around this?
New Market Wizards: Conversations With America's Top Traders by Jack D. Schwager
backtesting, beat the dealer, Benoit Mandelbrot, Berlin Wall, Black-Scholes formula, butterfly effect, commodity trading advisor, computerized trading, Edward Thorp, Elliott wave, fixed income, full employment, implied volatility, interest rate swap, Louis Bachelier, margin call, market clearing, market fundamentalism, money market fund, paper trading, pattern recognition, placebo effect, prediction markets, Ralph Nelson Elliott, random walk, risk tolerance, risk/return, Saturday Night Live, Sharpe ratio, the map is not the territory, transaction costs, War on Poverty
Our brain has the ability to see inner pictures. Whether these pictures begin as fuzzy or clear, they can be built up into great motivating visions. Inner voices can criticize us or they can encourage and guide us. Any feeling we’ve had in our lives—confidence, challenge, indomitable will, whatever it is—even if we’ve only had it once, can be transferred to any situation in our lives where we want or need it. When you say, “The map is not the territory,” do you mean that people have distorted views of reality that lead them astray? NLP believes that all maps (mental and physical) are a distorted, or selected, view of reality. A topographical map, a street map, and a weather map all provide different views of the same territory and all are true representations. Usefulness, rather than truthfulness, will guide you 418 / The New Market Wizard to want a different map at different times.