Economics, Econometrics and Finance
6 years ago

Revolutionizing Macroeconomic Models: A Shift Towards More Efficient Solutions

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Trends of Macroeconomic Models
Mikhail Andreyev, Andrey Polbin

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The article discusses different ideas from top economists about improving macroeconomic models after the 2007-2008 global economic crisis. They looked at changing the main neoKeynesian and DSGE models. Three solutions were suggested: using different models, fixing issues with existing models, or sticking with DSGE models. The researchers found that fixing current models is the best way forward.