Monday, September 19, 2016

Jason Smith — Of phlogiston and frameworks

…This could be summarized as simply saying there is no framework for macroeconomics. Frameworks, like string theory and quantum field theory, do two things: they tell you how to start looking at a problem, and they represent a shorthand for capturing the empirical successes of the field. My first criticism above says that string theory is a framework, so you can't make an analogy with macro which doesn't have a framework. My second criticism above says that until you have a working framework, you should be skeptical of any "natural experiments" because the interpretation of the natural experiments change with the framework.

In spite of this, for the most part I liked Romer's take on macroeconomics and I think he delivered some powerful arguments.…
Information Transfer Economics
Of phlogiston and frameworks
Jason Smith

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