17 Pages Posted: 19 Oct 2009
Date Written: April 30, 2009
I discuss the strengths and weaknesses of the current predominant approach to macroeconomic modelling and suggest an alternative perspective. This alternative rests on the insight that the economy is the result of individual decisions. The industry standard has it, however, that individual action is ruled by objective, general laws instead. Changing the point of view allows to reconcile numerous puzzles and paves the way for a promising new research agenda.
Keywords: fundamental uncertainty, subjectivity
JEL Classification: F31, F47, C53
Suggested Citation: Suggested Citation