Economics is the practice of creating a theory to explain commercial activity. This can span towns,cities, countries even the world. The concept is to improve commercial activity through actions predicted by the theory as giving rise to positive results.
Is it working
There are a large number of well known and respected economic theories (Keynesian, Malthusian, consumerism, monitarism and so on). Of course there are plenty of less well known theories as well.
The question of how successful economic management practices, based on these theories, have been is very difficult to answer. I often wonder how the economy would fare without any intervention.
While activities that stimulate or contract commercial activities can be implemented and their results monitored, the question of what would have happened without intervention is unanswerable.
Todays Economy
Some industry and government organizations are questioning the relevance and effectiveness of traditional practices aimed at improving economic conditions.
The question arises whether economists have kept up with the myriad of continuously evolving factors that drive the economy.
Current changes in employment levels, productivity and individual wealth seem to have little relationship to both macro and micro activities promoted by central economic theory.
Do Nothing
What would happen if governments stopped managing the money supply? (e.g., no economic easing , free floating rates, free trade and so on). Sadly no ones knows and it is unlikely we will ever find out.
