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

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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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
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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