I’m a bit worried, however, Michael Spence has not gotten the memo — i.e. he seems yet to internalize the seminally consequential scientific insight recently re-advertised by David Laidler that “a monetary economy has .. properties that cannot be analyzed using the tools of Arrow-Debreu style equilibrium modeling.”
the good news is . . . → Read More: Michael Spence on Where Macroeconomics Goes From Here
Economists are increasingly behaving a bit more like real scientists — such as biologists — in leaving their computer screens and going into the world doing field research. It’s a giant throwback to the research tradition of non-economist Ronald Coase, Nobel Prize winner.
James Hamilton has a fascinating piece up comparing a dominant formal math . . . → Read More: ELEGANT MATH VS FIELD RESEARCH — GUESS WHICH DOMINATES IN THE SCIENCE OF ECONOMICS