Tag Archives: Keynesian macroeconomics

A straight forward nail in the coffin of Keynesian macroeconomics


What did Edward Prescott do when he found Keynesian macroeconomics wanting: double down on the old time religion or start again?

The Queen didn’t ask Keynesians about not predicting the 1970s stagflation, a phenomenon their macroeconomics strictly forbade

Source: Kehoe, Midrigan and Pastorino 2018.