Those methodologies were without merit and caused real harm @t0nyyates @Noahpinion Calibration and microfoundations are pernicious nonsense
@AdamPosen @Noahpinion is bernanke and gertler's financial accelerator 'without merit'?- @AdamPosen @Noahpinion or kiyotaki and moore's model of liquidity constraints 'without merit'?
- @AdamPosen @Noahpinion genakopolous' analysis of asset price fluctutations also 'without merit'?
- @AdamPosen @Noahpinion or morris and shin's work on self-fulfilling breakdowns in securities markets 'without merit'?
- The merit is in intuition given by Bernanke's historical insight @t0nyyates @Noahpinion and in the subsequent empirical work, not the model
- I'm not playing and microfdn examples don't impress @t0nyyates @Noahpinion These article examples all just come down to one line ideas (1/3)
- Whether ideas are right (like Bernanke-Gertler) or wrong/trivial (most others like Woodford) @t0nyyates @Noahpinion is not determined (2/3)
- ...by their microfdns but by empirical tests @t0nyyates @Noahpinion which microfdns rarely inform and frequently bias or misdirect. (3/3)
- @AdamPosen @Noahpinion the romer work on endogenous growth... i'll spare u 500 more examples i could give spanning econ, pol and finance
- The merit is in intuition given by Bernanke's historical insight @t0nyyates @Noahpinion and in the subsequent empirical work, not the model
- @AdamPosen @Noahpinion mfs grew from careful analysis of the failures of the alternative. how do you substantiate ur assertion 'w/o merit'?
- @AdamPosen @Noahpinion dont be distracted by calibrat. its a sideshow by many [eg christiano] not even recognised as a separate approach.
Exchanges on the merits of microfoundations
Twitter exchanges following moves by Kocherlakota to get rid of freshwater macro economists from the Fed Reserve Bank of Minneapolis, and comments by Prescott that this was "crazy" and by Adam Posen that EP's comments were "beyond hypocrisy"
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Tony Yates581 Views
Tony Yates581 Views
