[neilwilson]

The problem is that the notion that 'microfoundations' can be linked to the macro economy by searching for 'deep parameters' suffers from precisely the same critique.

It's even proved wrong within the body of theory that embraces it. The Sonnenschein-Mantel-Debreu theorem.

Economists then do a lot of hand waving and point to 'data', without acknowledging that the 'data' is collected from a system that has been under the influence of their ideas for over 40 years and therefore will, inevitably, be the right shape.

If you collect data from a man in a straitjacket, unsurprisingly it will look like a man in straitjacket. It can tell you nothing about ideas that involve removing the straitjacket.

Non-falsifiability of theorems is the hallmark of macroeconomics. Because it is an ideology dressed up as a science.