Lars P. Syll — Out of the frying pan into the fire — DSGE and Ricardian equivalence

... I totally agree that macroeconomic models have to abandon Ricardian equivalence nonsense. But replacing it with “overlapping generations” and “infinite-horizon” models — isn’t that — in terms of realism and relevance — just getting out of the frying pan into the fire?

Out of the frying pan into the fire — DSGE and Ricardian equivalence
Lars P. Syll | Professor, Malmo University