Joseph Stiglitz calls for rethink of macroeconomics

DGSE models have “nothing to say” about economic effects of Covid-19 measures, Nobel winner says

Joseph Stiglitz
Joseph Stiglitz
Christian Flemming/Lindau Nobel Laureate Meetings

Nobel laureate Joseph Stiglitz attacked the standard theories used by macroeconomists in remarks today (August 25), arguing in favour of a model focused on disequilibrium.

Stiglitz, a professor of economics at Columbia Business School in the US, described the “standard equilibrium assumption” in key models as “misguided”. “Returning macroeconomic to better and more relevant foundations is imperative,” he said, criticising the dynamic stochastic general equilibrium, or DGSE models used by

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