Veteran economists weigh in on ‘rebuilding’ macro theory

blanchard
Olivier Blanchard believes DSGE models should be preserved, but supplemented

Several top economists have come together to give their thoughts on how it might be possible to rescue the core model of New Keynesian macroeconomics from its critics.

The series of papers, published in the Oxford Review of Economic Policy on January 5, tackle the question of how best to repair the dynamic stochastic general equilibrium (DSGE) model that underpins so much macroeconomic analysis. The articles are free to read until February 7.

Broadly, most of those contributing say the model s

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