Macroeconomics in disarray. (National Bureau of Economic Research's Annual Research Conference - II)

NBER Reporter | June 22, 1991| | Copyright

Macroeconomics in Disarray

N. Gregory Mankiw (1)

The basic questions of macroeconomics are: "What causes output and employment to fluctuate?" and "How should monetary and fiscal policymakers respond to these fluctuations?" As we sit here in the midst of the first recession in about a decade, these questions seem all the more pressing. Yet the sad truth is that we don't have answers to these questions that would command anything like a consensus among macroeconomists. In fact, one can fairly say that academic macroeconomics is in a state of disarray. I'd like to ...

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