THE MAP IS NOT THE TERRITORY: MODELS, SCIENTISTS, AND THE STATE OF MODERN MACROECONOMICS

@article{Kay2012THEMI,
  title={THE MAP IS NOT THE TERRITORY: MODELS, SCIENTISTS, AND THE STATE OF MODERN MACROECONOMICS},
  author={John A. Kay},
  journal={Critical Review},
  year={2012},
  volume={24},
  pages={87 - 99}
}
  • J. Kay
  • Published 1 March 2012
  • Economics
  • Critical Review
Abstract Policy makers and economists alike failed to predict the financial crisis of 2008. Their failure is due not only to the difficulties in predicting events in a complex world, but to the self-referential character of modern macroeconomics. Instead of seeking new empirical insights about economic behavior, macroeconomists have become creators of computer games—content to develop models that are internally consistent but have no necessary connection to the real world. Economic modeling… 
Induction and Deduction in International Relations: Squaring the Circle Between Theory and Evidence
International Relations (IR) scholarship represents the pursuit of theory about how the world works or ought to work. Yet despite this broad orientation of the field, the process of theory building
Mikropodstawy prawdziwe i fałszywe
This article presents an overview and critique of the two leading macroeconomic approaches from the last 70 years: reasoning using high-level aggregates detached from individuals and their choices,
On the Estimation and Application of Structural Decompositions of the South African Business Cycle
Alternative model specifications can affect the estimated structure and dynamics of the business cycle, which has important implications for policy analysis. This paper evaluates the consistency of
Incorporating risk in forest sector modeling – state of the art and promising paths for future research
TLDR
For incorporating risk in FSM, fuzzy set theory and robust optimization techniques seem promising new approaches, alongside methods that already are in use, like Monte Carlo simulation and, in particular, scenario and sensitivity analysis.
Building Collaborative Relationships for a Sustainable Finance System
Society today faces unprecedented social and environmental challenges that are both complex in nature and require immediate and severe action. The financial system is a complex system that has an
Induction and Deduction in Theorizing of International Relations
The article presents the ways of understanding the place of induction and deductive reasoning in the process of building the theory and knowledge of international relations and the resulting disputes
Evaluating the implications of Brexit for research collaboration and policy: a network analysis and simulation study
TLDR
It is suggested that the UK-EU research partnership has been mutually beneficial and that its continuation represents the best possible outcome for both negotiating parties, however, the uncertainties raised by Brexit necessitate looking beyond the EU for potential research partners.
Austrian and mainstream economics : how do they differ?
In the account of Kay (2011, 2012), in the years following the 2008 crash, the reputation of economists and their science suffered and as a result was diminished due to the global economic crisis1.
Toward a new microfounded macroeconomics in the wake of the crisis
The Great Recession that followed the financial crisis of 2007 is not only the largest economic crisis after the Great Depression of the 1930s, it also signals a crisis of economics as a discipline.
...
...

References

SHOWING 1-10 OF 30 REFERENCES
A NON-ARISTOTELIAN SYSTEM AND ITS NECESSITY FOR RIGOUR IN MATHEMATICS AND PHYSICS
A very extensive literature shows that the problems of ‘infinity’ pervade human psycho-logical reactions, starting from the lowest stage of human development up to the present and that without some
EXISTENCE OF AN EQUILIBRIUM FOR A COMPETITIVE ECONOMY
A. Wald has presented a model of production and a model of exchange and proofs of the existence of an equilibrium for each of them. Here proofs of the existence of an equilibrium are given for an
The trouble with Physics: The rise of string theory, the fall of a Science, and what comes next
The Trouble with Physics: The Rise of String Theory, the Fall of a Science, and What Comes Next is a book about the history of physics from Copernicus forward. It is also a book that discusses the
How Did Paul Krugman Get it so Wrong?
This article is a response to Paul Krugman's New York Times Magazine article, ‘How Did Economists Get It So Wrong?’ Krugman's attack on modern economics – and many adhominem attacks on modern
The Big Short: Inside the Doomsday Machine
When the crash of the U. S. stock market became public knowledge in the fall of 2008, it was already old news. The real crash, the silent crash, had taken place over the previous year, in bizarre
Reply To Steel And Pearl
...
...