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by pseut
4787 days ago
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A few nits to pick: * Macro's different than micro in that it's the predictions of the models, rather than their intellectual coherence, that matters.[1] They're obviously simplified because otherwise they're intractable. Even now, the emphasis isn't going to be and shouldn't be to make the models "more realistic," it's to make the models more accurate so that they can explain interactions between the economy and the financial sector better. The person or people who improve these models will probably win a nobel prize in ~30 years, so there are strong incentives w/in the discipline to get there. * The Lucas Critique is the macroeconomist's way of saying "correlation is not causation" -- patterns that you observe under one policy regime may not hold up if you change the policy. It has very little to do with going from one agent to many or partial to general equilibrium. * The private sector version of "doing macroeconomics" is "work for a bank" or "work for a hedge fund." I've heard it pays pretty well. [1] Yes, their predictions before and during the financial crisis were shit. That's a valid but separate criticism. |
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