What's Wrong with Modern Macroeconomics? Why its Critics have Missed the Point

Abstract

The blame for the recent financial crisis has been attributed to modern macroeconomic theory rather than banking and finance. This article defends modern macroeconomics against its critics arguing that the critics have missed the point of why macroeconomics is carried out in the way it is. It also defends finance from some criticisms, especially of the efficient markets hypothesis. It is claimed that, far from being in a state of crisis as a result of recent events, modern macroeconomics has received a huge stimulus, and that the financial crisis was brought about more by a failure to employ modern macroeconomics than by the failings of macroeconomics. (JEL code: E00)

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 13 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.