The Failure of Macroeconomics
Mario Rizzo of NYU economics on macroeconomics:
Therefore, it is not simply a matter of finding the right explanation of the recent financial meltdown and recession. The search by most macroeconomists is constrained by a certain set ofunquestioned methodological precepts. These precepts go to the heart of the conception of Economics as a Science. They are the standards of what constitute acceptable forms of expression of economic ideas.
His approach to economics places him in a good position to advance this criticism:
My research is grounded on four fundamental premises: (1) the decentralization of knowledge in a complex society, such as ours, is important in the explanation of both economic and social phenomena; (2) human action should be understood in a contextual way — both the individual and social context is needed to to make sense of what people do and how they relate to one another; (3) these phenomena are, wherever possible, best viewed as processes in time; and (4) economic and social policies usually have important unintended consequences.
