Are Econometric and Finance the Root Cause of Economic Problems?

With every passing day the differences between the econometric and finance is becoming less evident and it is not only in forms of the convergence of the both but also in forms of the nature, usability and importance that these two branches of study of getting these days. If we look holistically; econometric and finance are auxiliary activities and tools in the hands of the decision makers respectively in the field of economics and management and are supposed to provide support to the real economy in true senses.

But in last few decades every thing has changed and econometric and finance have turned out to be the most important aspect of economic and business policy in this highly competitive environment where a number of people are putting efforts acquire the same resources. Today both the economic and business policy is evolving around these two and are resulting in increase in the risk (look are the increasing frequency of economic and financial crises). It seems that the increasing dependence on these two and excess use of numbers in the planning is becoming a problem in itself. So can we say that econometric and finance are the root cause of all the economic problems that the today’s world is facing.

- Rajeev Kumar Upadhyay