A Brain’s View of Economics

The human brain makes predictions by finding similarities between the patterns in recent sensory inputs and previous experiences stored in its vast memory. The same process is now perfectly feasible for those engaged in promoting economic development.

CAMBRIDGE – In his pathbreaking 2005 book On Intelligence, Jeff Hawkins proposed an alternative paradigm of how the human brain works. In his view, the brain is not a Turing machine that manipulates symbols according to a table of rules, which is the model on which computers and artificial intelligence have been based. Instead, the brain is a giant hierarchical memory that is constantly recording what it perceives and predicting what will come next.

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