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Tag Archives: econometric modeling

Macro Models Aren’t Useful Now, And That Is Perfectly Fine Brian Romanchuk

There has been a small flurry of publications by neoclassical economists attempting to fit a pandemic into standard frameworks. This is what to be expected, as neoclassical models are frameworks designed to maximise the amount of publications over time. However, aggregated models are not particularly useful right now. This is true both for neoclassical as well as traditional heterodox macro models. The reason is that they do not offer much insight into either forecasting, nor are they...

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Tim Wallace — Inflation is getting harder to understand, central banker warns

No, inflation is not getting harder to "understand." Central banks are just using models that don't fit the case, for example, confusing special case model with general models, or using models that are mis-specified.  The message is to review the assumptions, including methodological ones, and revise them as appropriate. Then compare the model with the real world. What's so difficult to understand about that? This is what scientists do. Difficult, you say? That's what you are...

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