- The Microfoundation Thing (Wonkish)
"Mark Thoma sends us to Simon Wren-Lewis on microfounded macro models (especially the DSGE models that have dominated the literature even on the Keynesian side) versus “ad hoc” models like IS-LM. Wren-Lewis is on my side, sort of; but I’d like to add a few points, in no particular order..."
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"Microfounded and other Useful Models"
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"Microfounded and other Useful Models"
More on today's apparent theme, at least for the moment, economic methodology. This is from Simon Wren-Lewis:
Microfounded and other Useful Models, mainly macro: This title harks back to one of the books that have influenced me most: Blanchard and Fischer’s Lectures on Macroeconomics. That textbook was largely in the mould of modern microfounded macroeconomics, but chapter 10 was not, and it was entitled ‘Some Useful Models’. One of their useful models is IS-LM.
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