Global Financial Crisis Sparks Shift Towards More Realistic Macroeconomic Models
The article discusses how complex mathematical models in economics may have lost touch with real-world economic situations, especially after the Global Financial Crisis. It explores why this disconnect happened, who was involved, and what it means for economic policies. The focus is on the history of macroeconomic theory in the past 40 years, highlighting how crises have driven changes in economic thinking. The paper suggests that the aftermath of the GFC will lead to a more diverse approach to economics, where practical insights will be valued alongside mathematical models.