The trouble with macroeconomics ….according to Paul Romer

Paul Romer offers a scathing critique of modern macroeconomics that has ‘has gone backwards’ in the last 30 years and has evolved into a ‘post-real’ pseudo-science. (

He holds Robert Lucas, Thomas Sargent and Ed Prescott for being the key figures that led the development of ‘post-real macroeconomics’, despite important scientific contributions that they made prior to 1980.

My inference from this wide-ranging critique is that ‘post-real’ macroeconomics has little to offer to policy-makers in the developing world. What one needs, as Paul Romer puts it, are practitioners who can put useful knowledge to work.

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