Philip Pilkington — Shadow-boxing with DSGE Models

This is what mainstream economics is turned into. Economists bicker amongst themselves over models that are obvious nonsense. They will use criteria to prove or falsify such models that when turned around on beliefs they hold in common would demolish these too. It is a bizarre show.

It is a group of people vying for the Throne of Macro all the while secretly terrified that anyone will push the scientific criteria they claim to uphold too far and expose the fact that the Emperor is naked. How long can this carnival last? Well, if we look back on the last time such a discourse was firmly entrenched — that is, during the Scholastic era in the Middle Ages — we can be confident that it will last as long as those in power put up with it. But with regards to mainstream economics that day might well be coming to an end.

Fixing the Economists
Shadow-boxing with DSGE Models
Philip Pilkington