The unfortunate uselessness of most ’state of the art’ academic monetary economics

Willem Buiter

MPRA Paper from University Library of Munich, Germany

Abstract: Standard macroeconomic theory did not help foresee the crisis, nor has it helped understand it or craft solutions. This columns argues that both the New Classical and New Keynesian complete markets macroeconomic theories not only did not allow the key questions about insolvency and illiquidity to be answered. They did not allow such questions to be asked. A new paradigm is needed.

Keywords: financial crisis; insolvency; liquidity; incomplete markets; DSGE models; New Keynesian macroeconomics; New Classical Macroeconomics (search for similar items in EconPapers)
JEL-codes: A10 B00 B5 E00 E17 E31 E32 E6 (search for similar items in EconPapers)
Date: 2009-02-03, Revised 2009-03-06
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Citations: View citations in EconPapers (34)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:58407

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