The (Many) Things Macroeconomists Don't Know
Harvard Business Review
MARCH 23, 2012
What Trichet said was that state-of-the-art macroeconomic theory was almost entirely useless in dealing with the crisis that began in 2007. Buuut "atomistic rational agents [the figures that populate DSGE models] don't capture behavior during a crisis." He quoted (at length) a famous story from Keynes' General Theory.
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