tag:blogger.com,1999:blog-5908830827135060852.post1505519459143832263..comments2024-03-29T02:54:56.523-04:00Comments on Bond Economics: How Not To Defend DSGE MacroBrian Romanchukhttp://www.blogger.com/profile/02699198289421951151noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5908830827135060852.post-58221359840791114832017-11-19T14:30:59.637-05:002017-11-19T14:30:59.637-05:00IMO it's not even just DSGE, does the overall ...IMO it's not even just DSGE, does the overall academic economics field (mainstream) even want to be practical? The field is certainly large enough to be inward-looking and uses enough mathematical formalism to fool outsiders.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-17013783397513827802017-11-16T08:39:51.472-05:002017-11-16T08:39:51.472-05:00Since I think DSGE models are useless in practice,...Since I think DSGE models are useless in practice, I do not spend any time reporting on whatever the latest alleged insight they give. However, as an ex-academic in real academic field, I believe one has a duty to acknowledge the other side in debates. And since central bankers are generally mainstream economists, and they control the policy rate I write about alot, I obviously need to take their views into account.<br /><br />In this case, the paper could probably be used as evidence in a charge of clinical insanity. Not all of my readers necessarily agree with my views, but this paper provides a wonderful example of what I dislike about DSGE macro. Furthermore, the problem is easily understood without needing to plow through any economist technical argle-bargle. When the obituary of DSGE macro is written, it will almost certainly be referenced.Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-80979618106025939642017-11-16T04:05:17.831-05:002017-11-16T04:05:17.831-05:00"One strategy is to perform experiments on ac..."One strategy is to perform experiments on actual economies. Unfortunately, this strategy is not available to social scientists. "<br /><br />Yes they do. Virtual economies. They appear with every trading game created. The more complex and sophisticated they are and the more people are involved in them, the more analogues can be drawn - particularly against dollarised areas. <br /><br />The paper is a statement of religious position. There is only one true God. Time to ignore them and concentrate our efforts upon creating tools with which we can explain reality to ordinary people. Let's cordon off the Ivory towers as we have Fukushima and keep the toxic waste inside. <br />NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.com