Posted January 4, 2015 at 2:27 pm
[Silver]:In general, the most reliable theories of economics lie in the area of microeconomics. Macroeconomics, in contrast, is far less well understood.
[Antinora]: This is absolutely false. In fact, the discipline’s own assumptions about itself make it so. Macroeconomics has steadily and almost entirely disappeared after Keynes. Macroeconomics is applied microeconomics in the minds of economists. Because microeconomics is wrong macroeconomics is a mystery to them. It’s the reason nobody saw the economic crisis coming except non-orthodox economists. Money and credit do not figure prominently (at all really) in the orthodox understanding of the economy. There is also complete failure to understand that micro doesn’t scale up because aggregation doesn’t ‘work’. These two facts alone mean that economists are wrong on both counts; macro and micro.
