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Extreme Makeover: Science Edition

Extreme Makeover: Science Edition
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Marquis de Sade quipped: “Truth titillates the imagination far less than fiction”. Many a politician has taken heed of this insight, making the ability to turn ‘mistruths’ into believable facts an indispensible faculty of the politicians’ toolkit. Scientists, extoled as purveyors of truth and knowledge, have generally been spared the politician’s seedy reputation. Until now. […]

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Policy dead-end: Central Banks’ continued use of DSGE Models

Policy dead-end: Central Banks’ continued use of DSGE Models
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The DSGE model has been the workhorse of central banks since the early 1980’s and has suffered from abundant and scathing critique: Olivier Blanchard argues that DSGE models are “seriously flawed” and Paul Romer – a doyen of the neo-classical economic fraternity – accuses these macroeconomic models of “attribute[ing] fluctuations in aggregate variables to imaginary […]

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