Robert Solow kicking Lucas and Sargent in the pants

Created
Fri, 19/09/2025 - 16:29
Updated
Fri, 19/09/2025 - 16:29
The purported strength of New Classical macroeconomics lies in its firm anchorage in preference-based microeconomics, particularly the decisions made by inter-temporal utility-maximising, ‘forward-looking’ individuals. To some, however, this strength has come at too high a price. The quasi-religious insistence that macroeconomics must have microfoundations — without providing ontological or epistemological justification for this requirement — […]

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