The premise misses the "why". Up until the early 80s, macro was seen like an airplane control system where you could inject things here or there and make things work.
Then Bob Lucas came out with his critique for rational expectations, and since most economics (sans early Keynesian and MMT) have grounded decision and policy making in microeconomic foundations. Why? Because people make rational decisions across the distribution. This led to Huggett and Aiyigari models, as well as tweaks on computational/agent-based models to account for microeconomic foundations. It was a necessary evolution.
The critique in this article connects disparate things and misses much of the bigger picture.
The premise misses the "why". Up until the early 80s, macro was seen like an airplane control system where you could inject things here or there and make things work.
Then Bob Lucas came out with his critique for rational expectations, and since most economics (sans early Keynesian and MMT) have grounded decision and policy making in microeconomic foundations. Why? Because people make rational decisions across the distribution. This led to Huggett and Aiyigari models, as well as tweaks on computational/agent-based models to account for microeconomic foundations. It was a necessary evolution.
The critique in this article connects disparate things and misses much of the bigger picture.