MAC11 Trouble

Before coming for the lecture L11 on Paul Romer's The Trouble with Macroeconomics on Wed 10th Oct 2018 -- complete the following tasks

1. Economic Theory as Ideology

2. Ideological Macroeconomics and Increasing Inequality

3. The Power of Economic Theory: Graphically Illustrated

4. Michel Foucault: Power/Knowledge

5. Summary of the Great Transformation by Karl Polanyi

Questions for the Final --- Paul Romer criticises modern RBC -- real business cycle models. The questions below ask for some details of this critique

1. Explain and document: RBC models say that money doesn't matter, but empirical evidence shows otherwise.

2. FWUTV is a fancy way of saying "arbitrary assumptions". Where and How do modern macro models make arbitrary assumptions, about which there is no way of knowing whether they are true or false?

3. Clarify why Romer says that modern macro uses gremlins and phlogiston -- that is, the economy is driven by random shocks of unknown origin, rather than the behavior of human beings in response to changing economic circumstances.