Economic models are like a lot of things in life: What you get out of them depends on what you put in. But therein lies the problem. When reporting focuses on the ‘findings’ without looking at what assumptions underpin politically influential economic models, it leaves us vulnerable to what Richard calls the ‘peak-stupid of econobabble’.
Produced by Jennifer Macey – @jennifermacey
See The Australia Institute’s brief on the need for a Economic Modelling Code of Conduct – here
You can subscribe to The Australia Institute’s podcast series Follow The Money on iTunes. Each episode busts some economic myths, interprets econobabble and helps you sound really smart at your next dinner party.