2011/02/14 by Peter Howitt · 1 citation
Economics, Econometrics and Finance · #Economic Theory and Policy #Economic Theory and Institutions #Economic theories and models
paper · doi:10.1057/9780230226203.3008
openalex publication_date 2011/02/14 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/31
The lack of clear connection between macroeconomics and microeconomics has long been a source of discontent among economists. Arrow (1967) called it a ‘major scandal’ that neoclassical price theory cannot account for such macroeconomic phenomena as unemployment. Lucas and Sargent (1979) argued that Keynesian macroeconomics is ‘fundamentally flawed’ by its lack of a firm microfoundation. Countless students and practitioners alike have complained of the schizophrenic nature of a discipline whose two major branches project such radically different views of the world. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.