13-1a3a4b The long run of the evenly rotating economy (ERE) is not real at all, but a very useful theoretical construct that enables the economist to point out the direction in which the market is moving at any given time

“The “long run” of the ERE is not real at all, but a very useful theoretical construct that enables the economist to point out the direction in which the market is moving at any given time—specifically, toward the elimination of profits and losses if existing market data remain the same.”

Related:

• 5-2b5 Theories precede data
• What matters is in betweenrevisit
  • 1-1a5b4.4 Real-time calibration (i.e., recalibration) lets you adapt to the changing landscape
  • 3-1d6c Amara’s law modified - we underestimate the importance of consistency in the short-run, but overestimate in the long-run