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The IKE theory has been developed by Professor Roman Frydman and Professor Michael Goldberg in their book “Imperfect Knowledge Economics” from 2007. A non-mathematical exposition of the IKE theory is given in the book “Beyond Mechanical Markets” from 2011.
IKE’s hallmark is its recognition of the importance of non-routine change and imperfect knowledge for understanding asset markets and the consequences of economic policy. Beyond providing an alternative approach to macroeconomics and finance modeling, opening economic analysis to non-routine change requires rethinking conventional approaches to empirical research, which have assumed away the importance of such change.