Revolutionizing Macroeconomics: Returning to Whole Economy Analysis Sparks New Perspectives
The traditional way of building macroeconomics on microeconomics has failed to predict and explain real-world issues like the 2008 financial crisis. By looking at the economy as a whole and focusing on institutions and production conditions, we can gain new insights into macroeconomics. This approach, used by classical writers and Keynes, emphasizes the importance of understanding the economy as a complete system rather than just individual parts.