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Reflections on Modern Macroeconomics: Can We Travel Along a Safer Road?

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arxiv physics/0608148 v1 pith:4LE5LD5D submitted 2006-08-14 physics.soc-ph q-fin.GN

classification physics.soc-phq-fin.GN
keywords researchalongmacroeconomicsreflectionsagent-basedaimedalternativeanswer
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In this paper we sketch some reflections on the pitfalls and inconsistencies of the research program - currently dominant among the profession - aimed at providing microfoundations to macroeconomics along a Walrasian perspective. We argue that such a methodological approach constitutes an unsatisfactory answer to a well-posed research question, and that alternative promising routes have been long mapped out but only recently explored. In particular, we discuss a recent agent-based, truly non-Walrasian macroeconomic model, and we use it to envisage new challenges for future research.

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