Lecture on Paul Romer's article entitled Trouble with Macro
Before coming for the lecture L11 on Paul Romer's The Trouble with Macroeconomics on Wed 10th Oct 2018 -- complete the following tasks
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.
Adv Macro L11 Romer Trouble with Macroeconomics — 95m Youtube Video Lecture
Ball Defends EMH in GFC — Efficient Markets Hypothesis is not to blame for GFC, according to Ball
Brad DeLong: — Favorable COmment
Efficient Markets not compatible with Bubble in Stock Markets — Investopedia
Favorable Comment on Troubl — Simon Wren-Lewis
FNMA caused GFC — Investopedia Supports free markets
Investopedia: Great Depression — Brief Summary and Analysis of GD 29
Quora: Accuracy of Macroeconomic Models (NOT) — An answer which refers to this lecture
Quotes Critical of Economics — General Support for Romer -- many economists find Macro to be deeply wrong.
Real Causes of GFC (NOT Fannie Mae and Freddie Mac) — The Balance -- does not blame government for causing GFC
Trouble with Paul Romer — Hostile Comment by Stephen Williamson