The more we know, the less we can predict. Imagine, for example, that one day experts decipher the basic laws of the economy. Once this happens, banks, governments, investors and customers will begin to use this new knowledge to act in novel ways, and gain an edge over their competitors. For what is the use of new knowledge if it doesn’t lead to novel behaviours? Alas, once people change the way they behave, the economic theories become obsolete. We may know how the economy functioned in the past – but we no longer understand how it functions in the present, not to mention the future.
