Reflections on modern macroeconomics: Can we travel along a safer road?
Abstract
In this paper we sketch some reflections on the pitfalls and inconsistencies of the research program-currently dominant among the profession-aimed at providing microfoundations to macroeconomics along a Walrasian perspective. We argue that such a methodological approach constitutes an unsatisfactory answer to a well-posed research question, and that alternative promising routes have been long mapped out but only recently explored. In particular, we discuss a recent agent-based, truly non-Walrasian macroeconomic model, and we use it to envisage new challenges for future research.
- Publication:
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Physica A Statistical Mechanics and its Applications
- Pub Date:
- August 2007
- DOI:
- 10.1016/j.physa.2007.02.011
- arXiv:
- arXiv:physics/0608148
- Bibcode:
- 2007PhyA..382...89G
- Keywords:
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- Physics - Physics and Society;
- Quantitative Finance - General Finance
- E-Print:
- Latex2e v1.6