Sunday, March 29, 2009

Pattern Recognition Way to Understanding Economics

Economics is very simple, that is, if you don't get confused by the 'economists' who try to engulf you with tons of analysis. Fortunately, they themselves are perplexed by the conflicting signals churned out by the economic data. Now using pattern recognition as described in The Race for Numbers, you can quickly grasp the economic issues of the day.

In economics, there are certain rules that you must always bear, the most important of which is that economic progression or movement is sometimes circular and sometimes wavy. Sounds easy but in reality, very difficult because we have been conditioned to think linearly. Another is that a solution to an economic problem always carries with it other ramifications. For example, something that unleashes tremendous growth will create bottlenecks in other areas. In a sense, there is no real solution but just a counter-measure.

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