Monday, April 16, 2012

Economics, Mathematics and I

My MBA got me into economics. I am grateful to the postgraduate programme. I am first and foremost a mathematician. But I found in economics powerful application of the rational thinking that I learned from mathematics.

Economists and mathematicians are really quite similar in the lens they look at the world. When I look at numbers, I am looking for the stories behind the numbers. The same is true for economists. We are like detectives using investigative tools to unravel the truth behind the statistics and stories. By using the logics, we could do pure armchair reasoning that enable us to do a fairly good analysis a situation. After which, like doctors, we order tests in the form of data collation to verify our hypothesis. This helps us to separate wheat from chaff.

We live in a world inundated with data. The complications of everyday life often hide the larger trends behind the scenes. It is fun and challenging to shine a spotlight on the underlying process. Yes, in a sense it simplifies an issue by only emphasizing one part of the underlying reality – but the emphasis is helpful in revealing something important.

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