Mainstream macroeconomists are experiencing an unusual degree of self-doubt at the present time.
They know they didn't see the 2008 financial crisis (though Austrians did). And they don't seem to understand the current, what they consider, sluggish recovery.
Their self-doubt has reached such epic proportions that they are openly discussing it as if they were laying on a Freudian couch.
Papers and papers were read at the recent American Economic Association annual meeting held this year in Philadelphia on the problems with macroeconomics.
And consider this report from Financial Times columnist Martin Sandbu:
There have been several efforts to rethink macroeconomics after the global financial crisis, which hardly any macroeconomists saw coming. The field’s reputation has not been helped by the protracted weak recovery (or worse: in continental Europe macroeconomic policymakers gratuitously provoked a second recession in 2011).
The most impressive post-crisis effort of rethinking how macroeconomics should be done, by many of the field’s top practitioners, has just been completed. It digs deeper than some earlier efforts we have commented on, and mines a richer seam as a result. In a series of posts this week, Free Lunch will cover the writings collected in the latest issue of the Oxford Review of Economic Policy. Devoted to the “Rebuilding macroeconomic theory project”, all the articles are free to view until February 7.Here is the table of contents to that issue:
Rebuilding macroeconomic theory
ARTICLES
There is a remarkable degree of auto-dubium displayed in these papers. It is the time to strike. Austrians having a better grasp of business cycle theory and the property methodology for the study of economics, along with street cred in predicting the crisis, should have no problem in blasting these papers. And because they are experiencing so much self-doubt at presence, perhaps we can influence a couple.
On the future of macroeconomic models
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 43–54, https://doi.org/10.1093/oxrep/grx045Ending the microfoundations hegemony
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 55–69, https://doi.org/10.1093/oxrep/grx054Where modern macroeconomics went wrong
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 70–106, https://doi.org/10.1093/oxrep/grx057On the future of macroeconomics: a New Monetarist perspective
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 107–131, https://doi.org/10.1093/oxrep/grx044Is something really wrong with macroeconomics?
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 132–155, https://doi.org/10.1093/oxrep/grx053Good enough for government work? Macroeconomics since the crisis
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 156–168, https://doi.org/10.1093/oxrep/grx052Stagnant productivity and low unemployment: stuck in a Keynesian equilibrium
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 169–194, https://doi.org/10.1093/oxrep/grx060Macro needs micro
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 195–218, https://doi.org/10.1093/oxrep/grx050An interdisciplinary model for macroeconomics
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 219–251, https://doi.org/10.1093/oxrep/grx051The financial system and the natural real interest rate: towards a ‘new benchmark theory model’
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 252–268, https://doi.org/10.1093/oxrep/grx061DSGE models: still useful in policy analysis?
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 269–286, https://doi.org/10.1093/oxrep/grx058The future of macroeconomics: macro theory and models at the Bank of England
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 287–328, https://doi.org/10.1093/oxrep/grx055Modelling a complex world: improving macro-models
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 329–347, https://doi.org/10.1093/oxrep/grx056STANDING MATERIAL
Table of Contents
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages NP, https://doi.org/10.1093/oxrep/grx059
Austrian school professors, grad students and other Austrian scholars should really have a go at these papers. It should be easy target practice for us.
-RW
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