'New Keynesian' Macroeconomics - Worse Than Useless
By Lars P. SyllServaas Storm’s has a recent article that is a marvellous final take down of the ridiculous aspirations of New-Classical-New-Keynesian macroeconomic modelling. DSGE models are worse than useless - and still, mainstream economists seem to be überimpressed by the ‘rigour’ brought to macroeconomics by New-Classical-New-Keynesian DSGE models, its rational expectations, and microfoundations!
Source: econintersect.com