“One thing we’ve learned from the economic events of the past two years is that macroeconomics, or at least the part of macroeconomics that studies the business cycle, is a weak field. With only a few exceptions, macroeconomists, including the most illustrious, did not anticipate the current depression.”

—  Richard A. Posner

The Crisis of Capitalist Democracy (2010) Ch. 10 The Crisis of Macroeconomics.

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "One thing we’ve learned from the economic events of the past two years is that macroeconomics, or at least the part of …" by Richard A. Posner?
Richard A. Posner photo
Richard A. Posner 11
United States federal judge 1939

Related quotes

“But business cycles as a subject for study have enjoyed a revival for at least a decade now, stimulated in part by the severity of the 1974-75 and 1981-82 recessions and in part by the intellectual ferment surrounding the development of the "equilibrium business cycle model" and the attention paid to the seminal work of Robert E. Lucas, Jr., contained in his book Studies in Business Cycle Theory (1981). Indeed, there is no longer any need to lament the passing of economics courses explicitly carrying the title "Business Cycles," since the topic of business cycle behavior and analysis has so infiltrated courses carrying the title "Macroeconomics" that the two subjects have become almost interchangeable. 2 In this light it is fitting that the major research program of the NBER in this area is called "Economic Fluctuations" rather than "Macroeconomics."”

Robert J. Gordon (1940) American economist

Source: The American Business Cycle, 1986, p. 2

Robert C. Merton photo

“My decision to leave applied mathematics for economics was in part tied to the widely-held popular belief in the 1960s that macroeconomics had made fundamental inroads into controlling business cycles and stopping dysfunctional unemployment and inflation.”

Robert C. Merton (1944) American economist

Robert C. Merton, " Robert C. Merton - Biographical http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1997/merton-bio.html," at Nobelprize.org, 1997

“Since the late 1960s macroeconomic debates in the United States have centered on the competing interpretations of the new classical and new Keynesian macroeconomics. The initial new classical model developed in the early 1970s by Robert E. Lucas, Jr., combined market-clearing, imperfect information, and rational expectations. After much testing, it was eventually rejected in the late 1970s for failing to explain why business cycles lasted on average four years while information delays lasted only a few weeks. It was soon replaced by a second new classical approach, the Real Business Cycle (RBC) model, which was also based on continuous market clearing and competitive equilibrium, but now generated the business cycle through serially correlated procyclical technology shocks.”

Robert J. Gordon (1940) American economist

Robert J. Gordon, Are Procyclical Productivity Fluctuations a Figment of Measurement Error? (1992).

“The past few years were filled with indicators that the sociology of language is beginning to become established not only as a field of study and investigation, but also as an academic area of studies.”

Thomas Luckmann (1927–2016) American-Austrian sociologist

Thomas Luckmann. The sociology of language, Bobbs-Merrill, 1975. p. 56

Robert Skidelsky photo

“Keynes's economic philosophy is thus made up of three interdependent parts: his technical macroeconomics, his embattled political philosophy and his ultimate ethical purpose.”

Robert Skidelsky (1939) Economist and author

John Maynard Keynes: 1883-1946: Economist, Philosopher, Statesman (2003), Introduction

“My recent work on macroeconomics has stressed long-term issues, including the determinants of long-run economic growth. From the standpoint of fighting world poverty, nothing is more important than figuring out which policies differentiate the fast-growing countries from the slow-growing ones.”

Robert Barro (1944) American classical macroeconomist

Source: Nothing Is Sacred (2002), p. xviii

“Keynes is dead; dynamic programming; Keynes is still dead. That’s the way Stanford graduate economics students recently summed up what they had learned in their core graduate macroeconomics course.”

David Colander (1947) American economist

David Colander, "The Keynesian Method, Complexity, and the Training of Economists" (2009)
2000s

Janet Yellen photo

“[New classical economics] was the starting point for a rightward shift in economics that went against the idea that monetary policy can improve macroeconomic outcomes.”

Janet Yellen (1946) American economist and professor

The Hand on the Lever (2014)

“Keeping a book on macroeconomics up to date is a challenging and neverending task. The field is continually evolving, as new events and research lead to doubts about old views and the emergence of new ideas, models, and tests. The result is that each edition of this book is very different from the one before. This is truer of this revision than any previous one.”

David Romer (1958) American economist

Advanced macroeconomics 4th ed. (2011), "Preface to the Fourth Edition"

Arthur F. Burns photo

“Business cycles are a type of fluctuation found in the aggregate activity of nations that organize their work mainly in business enterprises: a cycle consists of expansions occurring at about the same time in many economic activities, followed by similarly general recessions, contractions, and revivals which merge into the expansion phase of the next cycle; this sequence of changes is recurrent but not periodic; in duration business cycles vary from more than one year to ten or twelve years; they are not divisible into shorter cycles of similar character with amplitudes approximating their own.”

Arthur F. Burns (1904–1987) American economist and diplomat

Arthur F. Burns and George W. Mitchell (1946). Measuring business cycles. New York: National Bureau of Economic Research. p. 3; Cited in: Robert J. Gordon, ed. The American Business Cycle: Continuity and Change, 1986. p. 2

Related topics