Monday, September 7, 2009

The Failure of Macroeconomics - Alpha

I've always said that macroeconomics was a voodoo discipline.

Now, one of the field's best admits it. Really, all the important macro research was done by Keynes, a handful of behavioral economists, and some academic interlopers who didn't drink the math-heavy kool-aid. Economics, to be a science and not voodoo, needs to return to empiricism - which means the bubble of 2008 and other real world phenomena need to be taken into account and not ignored as aberations.

A bracing read:

Here's another critique from one of the field's best:

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