What is the myth of short run regularity?

Answer 1

The myth of short run regularity refers to the belief that economic relationships and patterns observed in the short term will consistently hold true over time. This assumption can lead to misguided expectations in economic forecasting and policy-making, as short-run dynamics may be influenced by temporary factors or anomalies that do not persist. In reality, economic behavior is often more complex and subject to change due to various external influences, making long-term predictions based on short-term data unreliable. Understanding this myth encourages a more cautious and nuanced approach to economic analysis.