What's the difference between "Economics" and

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Economics is the baseless propaganda the finance people use to control the public and politicians. The results can't be replicated, so they're effectively useless.

See the federal reserve study:
http://www.federalreserve.gov/econresdata/feds/2015/files/2015083pap.pdf

Economics has no predictive power or consensus, nor has it ever had predictive power or consensus. It's just a bunch of baseless opinions, not a science.

>>977863
So what exactly is the difference between the two?

You managed to reply to my topic, without replying to it.

>>977872
The first line: the economics people work for the finance to produce sufficiently convincing studies in order to get the public to do what the finance people want. That's the difference.

Economics is more about money in general, while finance is money as applied to banking and stock market speculation.

>>977855
economics is the "study" of Price which can't be faked and demand an arbitrary quantity which the presume based on supply or number of goods purchased. Arbitrary curves about these values are made. b/c at price real supply= "real" demand.
Its completely theoretical and Micro and Macro do not gel meaning that the "science" has a long long way to go before they reconcile their opinions. The biggest factor that goes unaccounted for is time. which no science or analysis can really do without.


Finance is a very vast field. but its focus is the correct valuation of streams of income.
some guy I forget who, basically said that we could equate every stream of income and equalize it somehow to the value of a simple note. The nitty gritty is in how to actually do that and deciding which metrics matter, and how to properly value and weight the components.

This is of course talking about the pure study.

Economics is why and how the world reacts to different things happening.

Finance is how to use the information that Economics provides, and make a profit from it.

That's what the difference is, Economics is the information, Finance is the application of that information, usually to gain a profit.

>>977891
>some guy I forget who, basically said that we could equate every stream of income and equalize it somehow to the value of a simple note.

I said that in a thread around here a while back as a summary of a book I recommended. The note was particularly a zero coupon bond. Book is Foundations of financial markets and institutions by modigliani and others.

>>977855
Well OP, Economics is a very broad field. A lot of people don't seem to actually realize what it is. Many seem to think that someone who studies Economics is doing it because they love money and want to make a lot of dosh or something. I'd actually equate this more with Finance.

Anywho, Economics is more about the study of resources and how they are allocated. Means of production, distribution, consumption, etc. are all studied in Economics. There are many different thought schools, but they are all the same in that they all seek to understand why we allocate our resources the way we do, how we allocate these resources, and if possible, how can we do it better.

It is very theoretical, yet at the same time can be very applicable in several different fields, and despite what people will tell you on here, it's actually a pretty employable major provided you don't shy away from the math that is involved. Many schools offer a BS or a BA option for Economics. If you're going to get an undergrad in Econ, get a BS, it's much more useful.

Finance on the other hand, is a little bit more narrow. Finance is more the study of money and different financial instruments and how to invest this money. Economics and finance are very closely related but at the same time very different. Really Financial Economics is only a small piece of what Economists do, and this is where the overlap between Economics and Finance is.

Like Economics though, Finance also has different schools of thoughts. I wouldn't say either one is really a hard science, though I personally find both interesting to study.

I have a BS in Economics, but I now work in the finance industry. Like I said, there is some overlap.

>>977900
Thankyou for making this a better place

>>977899
I'm not sure if that's 100% correct
I'm running a hotel with 100 doors. An economist would say you can sell 100 doors for 20$ a door
A finance guy would say, we're not breaking even at that price we need more.
Okay 30$ a door we fill 50 rooms
FG would say okay cut maids and supplies, better but still not enough
EG 40$ and were at 20 rooms
worse than both.
Businessman, Okay first 20 charge $40, then next $50 charge $30, and the stragglers get $20.
all agree it works. first month. Manager calls people complain, bad review on tripadvisor.
second month sucks.
Manager with Psych degree says lets reverse it, first 30 people get 20$ middle fifty get $30 and last 20 get $40
works like a charm all is well at chateau /biz/

>>977855
In the simplest terms:
Economics is the study of the entire economy.
Finance is the study of the stock market.

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Economics is just applied sociology

>>977863

agreed.

> all human history, and future prediction can be reduced to numbers

>>978155
>We can calculate at which point in time the universe began existing
>We can accurately collide protons at almost the speed of light
>Interest rates, inflation rates and currencies are god given and shouldn't be quantified or even talked about

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>>978175
No you are missing the point completely. There is real science and then there is pseudo science, like economics.

Everybody agrees with e=mc^2, half of the economist agree with the efficient market theory and half disagrees. LOL. Half of the economists agrees rising rates would be a good thing now, half would disagree. It's a million theories of theories and opinions.

Now, im not saying there isn't an expert geniuses with iq an of 200 who can do better than most, but even they can be wrong anything related to enonomics as it's just not real science.

>>978175
You are comparing things with a few constants to a system with millions of variables. Physical laws don't change but a butterfly flapping its wings in China can cause a market collapse in Ethiopia. Economics is so interconnected and event driven that you would literally have to know every future event and pinpoint exactly how it would affect the psyche of every world citizen in order to determine with certainty how the market will react. Using a risk based strategy you can make educated guesses but unless you are a large enough entity to manipulate the market or are privy to information that the general public isn't, you are just in it for the ride.

>>977855
Economics = study of the economy

Finance = study of money

>>978107
Shame they cut the philosopher out on the far right

>>978186

Pretty much the same reason why psychology is a fucking farce. A millions theories of theories, referencing one another ad eternam, with very few scientific fact here and there.

Also take note that psychology isn't the same thing than neuropsychology, which is an actual science backed by fact and solid research over the course of thousands of years.

>>977863
lol this troll again.

>>977918
I am majoring in Applied Math and I was thinking about minoring in Economics or Finance. I don't know which one fits my major best though.

Literally 3 seconds of Google and Wikipedia:
>Finance:
Finance is a field that deals with the study of investments. Which includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk. Finance can also be defined as the science of money management.
Economics:
>Economics is the social science that aims to describe the factors that determine the production, distribution and consumption of goods and services.

>>978596
ty

Economics is like history.
You can't predict the future and has very little real value. But it can help you avoid certain steps that are doomed to fail.
Capitalism will cause recessions and economic collapse and swing up and down.
Just as neo liberal policies will increase differences, help the rich and fuck over the world.

Finance is the study of money as it works in the capitalistic society and institutions.
Economics is the study of the allocation of resources. It is not bound to be about money and capitalism.

>>978591
Pick the one that interests you more. Applied math is extremely useful in both fields.