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Not Going Away? Microfoundations in the Making of a New Consensus in Macroeconomics

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Abstract

Macroeconomics, or the science of fluctuations in aggregate activity, has always been portrayed as a field composed of competing schools of thought and in a somewhat recurrent state of disarray. Nowadays, macroeconomists are proud to announce that a new synthesis characterizes their field: no longer are there fights and disarray, but rather convergence and progress. I want to discuss how modern macroeconomists see the emergence of such a consensus and, therefore, how they see the history of their sub-discipline. In particular, I stress the role played in the making of such a consensus by a particular understanding of the microfoundations that macroeconomics needs.

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File URL: http://www.fea.usp.br/feaecon/RePEc/documentos/PGDuarte_NotGoingAway_WP_IPE.pdf
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Paper provided by University of São Paulo (FEA-USP) in its series Working Papers, Department of Economics with number 2011_02.

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Date of creation: 18 Oct 2011
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Publication status: Published in book
Handle: RePEc:spa:wpaper:2011wpecon02

Note: Published in the book "Microfoundations Reconsidered: the relationship of micro and macroeconomics in historical perspective", edited by Pedro Garcia Duarte and Gilberto Tadeu Lima (Cheltenham, UK: Edward Elgar, 2012, ch. 6, pp. 190-237)
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Keywords: new neoclassical synthesis; microfoundations; DSGE models; consensus;

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Cited by:
  1. Pedro Garcia Duarte & Kevin D. Hoover, 2012. "Observing Shocks," History of Political Economy, Duke University Press, vol. 44(5), pages 226-249, Supplemen.
  2. De Vroey Michel & Duarte Pedro Garcia, 2013. "In search of lost time: the neoclassical synthesis," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 1-31, January.
  3. André Roncaglia de Carvalho, 2013. "Inflation, structural change and conflict in post-disinflation Brazil: a structuralist appraisal," Working Papers, Department of Economics 2013_25, University of São Paulo (FEA-USP).

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