BONUS: Noah Smith on the State of Macroeconomics
Macro Musings with David Beckworth
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What's the General Equilibrium Effect?
The macro is in its infancy. Do you really think that macroeconomic fluctuations are determined by a ferry that tells you when you're allowed to change your price? Like no. It's an approximation. But let me ask this question about this so... Right, but not a structural one. This structural share. That would describe how people change their prices in response to actual events. And people have tried to make those models. There's been endogenous, you know, price-setting behavior. You can't validate these things with data. A lot of times you have mystery meat code that ends up converging to something and saying, look at this result we get. I'm pessimistic about the top
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