--- title: "Meaning & Key Takeaway of: Modern economics is a set of formal…" description: "\"Modern economics is a set of formal models and equations purporting to fully determine human behaviour, at least in the economic realm. And there is no..." image: "https://sms4smile.com/quotes/i/01b/murray-rothbard-1563_behaviour_modern-economics-is-a-set-of-formal-mode_1054767.jpg" --- # Modern economics is a set of formal models and equations… ![“Modern economics is a set of formal models and equations purporting to fully determine human behaviour, at least in the economic realm. And there is no way that uncertainty can be compressed into determinate mathematical models.” quote by Murray Rothbard](https://sms4smile.com/quotes/i/01b/murray-rothbard-1563_behaviour_modern-economics-is-a-set-of-formal-mode_1054767.jpg) [Download](https://sms4smile.com/quotes/i/01b/murray-rothbard-1563_behaviour_modern-economics-is-a-set-of-formal-mode_1054767.jpg) [Open image](https://sms4smile.com/quotes/i/01b/murray-rothbard-1563_behaviour_modern-economics-is-a-set-of-formal-mode_1054767.jpg) > “Modern economics is a set of formal models and equations purporting to fully determine human behaviour, at least in the economic realm. And there is no way that uncertainty can be compressed into determinate mathematical models.” [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Economic models attempt to fully predict human behavior, but uncertainty cannot be fully captured by deterministic equations. **In simple terms:** Models can’t fully predict human uncertainty. Key Takeaway Accept limits of economic modeling. Themes economics philosophy uncertainty Mood analytical skeptical Type academic critical When to use this quote - policy analysis - academic research - financial forecasting Key Concepts determinism complex systems Questions to Reflect On - How can we incorporate uncertainty into economics? - What alternatives exist to deterministic models? A Different Perspective Overreliance on models can mislead decisions. ★ ★ ★ ★ ★ No ratings yet [Behaviour](https://sms4smile.com/quotes/about/behaviour/) [Economics](https://sms4smile.com/quotes/about/economics/) [Human behaviour](https://sms4smile.com/quotes/about/human-behaviour/) [Humans](https://sms4smile.com/quotes/about/humans/) [Mathematical models](https://sms4smile.com/quotes/about/mathematical-models/) [Realms](https://sms4smile.com/quotes/about/realms/) [Uncertainty](https://sms4smile.com/quotes/about/uncertainty/) ## Related quotes > [“Modern economics, by which I mean the style of economics taught and practised in today's leading universities, likes to start the enquiries from the…](https://sms4smile.com/quotes/partha-dasgupta/modern-economics-by-which-i-mean-the-style-of-economics-taught-and/) Partha Dasgupta > [If you are an expert in modern economics, then you are an expert in smoke and mirrors, because that's what modern economics is: a…](https://sms4smile.com/quotes/the-free-world-charter/if-you-are-an-expert-in-modern-economics-then-you-are-an-expert-in/) The Free World Charter > [The modern economics of the newsroom don't support big investigative reporting staffs.](https://sms4smile.com/quotes/steve-bannon/the-modern-economics-of-the-newsroom-don-t-support-big-investigative/) [Steve Bannon](https://sms4smile.com/quotes/author/steve-bannon/) > [“A fundamental insight of modern economics is that the key to the creation of wealth is a division of labor, in which specialists learn…](https://sms4smile.com/quotes/steven-pinker/a-fundamental-insight-of-modern-economics-is-that-the-key-to-the/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [Modern economics and the welfare state borrowed heavily on the future.](https://sms4smile.com/quotes/gregory-benford/modern-economics-and-the-welfare-state-borrowed-heavily-on-the-future/) [Gregory Benford](https://sms4smile.com/quotes/author/gregory-benford/) > [Think how modern economics presents work. 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Man may achieve liberty and abundance, freedom…](https://sms4smile.com/quotes/murray-rothbard/absolute-freedom-need-not-be-lost-as-the-price-we-must-pay-for-the-2/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [The underconsumptionist of 1819 believed that consumption would be stimulated by tariffs, while the underconsumptionist of a later day urged monetary expansion as the…](https://sms4smile.com/quotes/murray-rothbard/the-underconsumptionist-of-1819-believed-that-consumption-would-be/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) [Explore all 227 Murray Rothbard quotes ](https://sms4smile.com/quotes/author/murray-rothbard/) ## More Behaviour quotes > [Nobody has the right to put another under such a difficulty that he must either hurt the person by telling the truth or hurt…](https://sms4smile.com/quotes/samuel-johnson/nobody-has-the-right-to-put-another-under-such-a-difficulty-that-he/) [Samuel Johnson](https://sms4smile.com/quotes/author/samuel-johnson/) > [“Do you keep pace with those around you, or do you decide yourself just how you will live your life? 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I can't bear it, I can't bear inequality, I can't bear bad…](https://sms4smile.com/quotes/janet-suzman/i-think-it-s-a-very-central-tenet-to-it-yes-it-is-i-can-t-bear-it-i/) [Janet Suzman](https://sms4smile.com/quotes/author/janet-suzman/) > [Look, I was only given a year or two to come up with tunes for this record, and when all but eight of them…](https://sms4smile.com/quotes/alan-gorrie/look-i-was-only-given-a-year-or-two-to-come-up-with-tunes-for-this/) Alan Gorrie > [Behaviour is a mirror in which everyone shows his image.](https://sms4smile.com/quotes/vinesh/behaviour-is-a-mirror-in-which-everyone-shows-his-image/) [Vinesh](https://sms4smile.com/quotes/author/vinesh/) > [There's a wow factor associated with my name. It could be due to my work as well as my behaviour.](https://sms4smile.com/quotes/prosenjit-chatterjee/there-s-a-wow-factor-associated-with-my-name-it-could-be-due-to-my/) [Prosenjit Chatterjee](https://sms4smile.com/quotes/author/prosenjit-chatterjee/) > [The individualism of current economic theory is manifest in the purely self-interested behaviour it generally assumes. It has no real place for fairness, malevolence,…](https://sms4smile.com/quotes/herman-e-daly/the-individualism-of-current-economic-theory-is-manifest-in-the/) [Herman E. 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