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Reflections on modern macroeconomics: Can we travel along a safer road?

  • Gaffeo, E.
  • Catalano, M.
  • Clementi, F.
  • Delli Gatti, D.
  • Gallegati, M.
  • Russo, A.

In this paper we sketch some reflections on the pitfalls and inconsistencies of the research program—currently dominant among the profession—aimed at providing microfoundations to macroeconomics along a Walrasian perspective. We argue that such a methodological approach constitutes an unsatisfactory answer to a well-posed research question, and that alternative promising routes have been long mapped out but only recently explored. In particular, we discuss a recent agent-based, truly non-Walrasian macroeconomic model, and we use it to envisage new challenges for future research.

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Article provided by Elsevier in its journal Physica A: Statistical Mechanics and its Applications.

Volume (Year): 382 (2007)
Issue (Month): 1 ()
Pages: 89-97

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Handle: RePEc:eee:phsmap:v:382:y:2007:i:1:p:89-97
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