Brad DeLong — Macroeconomics’s “Faustian Bargain”?: Wednesday Focus

Brad DeLong sums up some of the proceedings and adds a bit of his own.

...models with micro foundations are not of use in understanding the real economy unless you have the micro foundations right. And if you have the micro foundations wrong, all you have done is impose restrictions on yourself that prevent you from accurately fitting reality.

Washington Center For Equitable Growth — The Equitablog
Macroeconomics’s “Faustian Bargain”?: Wednesday Focus
Brad DeLong | Professor of Economics, UC Berkeley