Reflections on Modern Macroeconomics: Can We Travel Along a Safer Road?

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

doi:10.1016/j.physa.2007.02.011

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Reflections on Modern Macroeconomics: Can We Travel Along a Safer Road?

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

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Abstract

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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E. Gaffeo, M. Catalano, F. Clementi, D. Delli Gatti, M. Gallegati, A. Russo. 2006-08-14. Reflections on Modern Macroeconomics: Can We Travel Along a Safer Road?. https://doi.org/10.1016/j.physa.2007.02.011

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