BONUS: Noah Smith on the State of Macroeconomics
Macro Musings with David Beckworth
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The General Equilibrium Critique of DSGE Models
The empirical work is really subject to this general equilibrium critique. You can't just assume up that everything's going to approximate and be the same. Once we get those realistic micro foundations, not Prescott sprinkles fairy dust on his favorite fable micro foundations, but actual real micro foundations, they're probably going to have behavioral effects," says Alleggant.
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