S4 Ep19: Director's Cut: Post-crisis prognosis for macroeconomics

The global financial crisis exposed flaws in the methods and
theories of macroeconomics. Certain aspects of the crisis were
completely unexpected; other burgeoning problems were flagged up
but explained away, and thus allowed to get worse.


As the profession seeks to reinvent itself post-crisis and
reassert its worth, what exactly has been learned and what
changes have been made to the practice of macroeconomics? New
models appear to be flourishing, but debate continues over
whether we have improved our understanding and mitigated the
potential for misreading the results that these models present.


In this Director's Cut of 'The Sound of Economics' podcast,
Bruegel deputy director hosts a conversation with Nicola Viegi,
South African Reserve Bank professor of monetary economics at the
University of Pretoria, and Frank Smets, director general of
economics at the European Central Bank. 


For further reading on this topic, consider our overview of the
‘Rebuilding Macroeconomic Theory Project’ recently concluded by
the Oxford Review of Economic Policy, written by Konstantinos
Efstathiou.