De Vroey, Michel
[UCL]
Academic macroeconomics as it has been practiced for the last three decades has a bad reputation, especially after the onset of the 2008 recession. The aim of this paper is to reflect on this state of affairs. To begin, I draw a comparison between Keynesian and Lucasian macroeconomics, bringing to light that they are based on different tenets. Next, I claim that because of its higher internal consistency, Lucasian macroeconomics is superior to Keynesian. However, I also claim that espousing it bears a heavy price — in particular a limited usefulness for policymaking and an inability to come to grips with economic crises.
Bibliographic reference |
De Vroey, Michel. What can civil society expect from academic macroeconomics?. IRES Discussion Papers ; 2013022 (2013) 20 pages |
Permanent URL |
http://hdl.handle.net/2078.1/134590 |