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Macroeconomics is still in its Infancy

9 点作者 superb-owl超过 2 年前

1 comment

chatterhead超过 2 年前
Part of the problem with macroeconomics, as with many academic disciplines, is it depends too much on math, models and the need to quantify, qualify and manipulate answers instead of intuiting problems to discover solutions.<p>Much like medicine in the 1600s (as the author discusses) macroeconomics is a bit of a guessing game. One of the largest factors the author didn&#x27;t discuss (even though he mentioned the Lucas Critique) is the Cobra Effect which ultimately renders useless the majority of policy initiatives as announcing those initiatives undermines their effectiveness.<p>Thus the Federal Reserve and Congress have to adopt a more indirect way to approach solving large visible economic problems without tipping people off to the loopholes and implications and opportunities to profit from them.<p>What this really comes down to is gamesmanship. You have to solve macroeconomic problems through innovative solutions that often seem counter intuitive because they are by design meant to misdirect so the real target can be achieved. This ultimately boils down to leadership.<p>The way through the macroeconomic storms is forward; let the academics discuss building models and learning how to do with systems what talented individuals can understand through substantive intuition.