The best paragraph I’ve read today
April 2nd, 2006Equilibrium macroeconomic models are described by systems of difference equations. These equations involve a number of dynamic relationships between a set of [...] variables [...]. Although the equations that describe economies look a lot like the equations that describe physical systems, they are different in one important respect. The behavior of economies depends on the expectations of thinking human beings.
From Roger Farmer’s Macroeconomics of Self-fulfilling Prophecies (pg. 3, 2nd ed.).