The Mainstream Obsession with Microfoundations and why it is an intellectual dead-end

Level: advanced
Steve Keen | ProfSteveKeen, 2016

Perspectives: Post-Keynesian Economics, Complexity Economics
Topic: mainstream critique
Format: Lecture, Duration: 01:34:08

Keen first compares neoclassical approaches to modelling with heterodox ones. Then he discusses in length the required assumptions and the inconsistencies of the aggregate demand and supply model, which is extrapolated from a micro perspective. At the end some dynamic models with feedback mechanisms are shown.