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What is the trouble with macroeconomics according to Paul Romer?
What is the trouble with macroeconomics according to Paul Romer?
Expert Solution
Paul Romer argues that macroeconomics has gone backward for more than three decades. He asserts that macroeconomics treatment of identification of problems is longer credible and escapes challenges because it has become more opaque. He continues to argue that economists have dismissed facts by arguing that tight monetary policies are likely to drive the economy into a recession. According to Romer, models developed within the study are attributed to imaginary causal forces that can't be influenced by an individual's actions. He argues that monetary policies don't actually matter all that much.
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