Do we need new modelling approaches in macroeconomics? / Claudia M. Buch; Oliver Holtemöller
VerfasserBuch, Claudia M. ; Holtemöller, Oliver
ErschienenHalle (Saale) : Inst. für Wirtschaftsforschung, 2014 ; Halle, Saale : Universitäts- und Landesbibliothek Sachsen-Anhalt, 2014
UmfangOnline-Ressource (PDF-Datei: IV, 26 S., 0,38 MB) : graph. Darst.
SerieIWH-Diskussionspapiere ; 2014,8
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Do we need new modelling approaches in macroeconomics? [0.38 mb]
The economic and financial crisis that emerged in 2008 also initiated an intense discussion on macroeconomic research and the role of economists in society. The debate focuses on three main issues. Firstly it is argued that economists failed to predict the crisis and to design early warning systems. Secondly it is claimed that economists use models of the macroeconomy which fail to integrate financial markets and which are inadequate to model large economic crises. Thirdly the issue has been raised that economists invoke unrealistic assumptions concerning human behaviour by assuming that all agents are self-centred rationally optimizing individuals. In this paper we focus on the first two issues. Overall our thrust is that the above statements are a caricature of modern economic theory and empirics. A rich field of research developed already before the crisis and picked up shortcomings of previous models.