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Keen Behavioural Finance 2011 Lecture 06 Part 1: State of Macroeconomics

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Uploaded on Sep 7, 2011

One year after the start of the greatest economic crisis since the Great Depression, the editor of the American Economic Review: Macroeconomics claimed that "the state of macro [theory] is good". How could be be so deluded? Macroeconomics has been distorted by appalling scholarship and a misguided belief that macroeconomics and microeconomics should be consistent. The best critics of this, ironically, are given by the authors most responsible for the state of macroeconomics, John Hicks and Robert Solow

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