Comment It is much simpler... (Score 1) 676
...and Peter Drucker observed or rather stated the obvious years ago: One can't really compare models in physics with models in economics, though it's tempting. The problem is, the model or a theory that tries to explain the real world beaviour will be applied in the real world which will in turn influence the real world system, which will eventually adapt, rendering the initial observations (that led to the theory in the first place) irrelevant for future explanations. For example: Every theroy we build on which parameters influence inflation will eventually influence economic behaviour by tuning monetary and fiscal policies according to theory. Market participants will eventually accomodate and alter their inflation expectations and in turn economic activity. Compare that to a model in physics: No matter what the explanation we find for the real world system, that theory will not influence the system. It doesn't matter to the system whether we think Newtonian physics or relativity is correct.
So, every economic model or theory will eventually become wrong. Econophysics, statistical mechanics and complex network theory may be the key to unlocking economic science and taking it a step further (from crystal ball gazing)....let me dream....