Part 8/10:
The Flawed Feedback Loop and Its Consequences
The absence of a robust feedback loop, akin to those in tech development, is at the heart of many problems. Central banks, for instance, may react too late or act on stale data, exacerbating economic instability. The lack of timely, practical data collection and responsive mechanisms means policymakers are often blindsided by emerging crises.
This systemic lag is compounded by the academic culture that prioritizes theoretical elegance over empirical validation, creating an environment where models and predictions are seldom challenged outside a narrow peer circle.