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Just read Lars's piece. Has he even read passed the first two paragraphs in Simon's post? Doesn't appear so. Simon is not arguing that the new classical revolution and the methodology it brought along was a net positive development since he claims there was nothing wrong in the models that preceded the new classical stuff.
IMO, it's quite simple, new classicals brought nothing to macro. Nothing. All of it was already there in Keynesian models that preceded the new classic, rational expectations fads.
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Just read Lars's piece. Has he even read passed the first two paragraphs in Simon's post? Doesn't appear so. Simon is not arguing that the new classical revolution and the methodology it brought along was a net positive development since he claims there was nothing wrong in the models that preceded the new classical stuff.
IMO, it's quite simple, new classicals brought nothing to macro. Nothing. All of it was already there in Keynesian models that preceded the new classic, rational expectations fads.
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