As demonstrated by the GEM Blog, today’s macro academy defends its market-centric general-equilibrium model class even at the cost of stabilization-policy irrelevance. Such Ptolemaic rules of engagement can perhaps be understood as mainstream theorists’ attempt to define a comforting space where, despite their inadequate product, they are always right. I very much like this poem by Yehuda Amichai, “The Grounds Where We Always Are Right”:
On the grounds where we always are right
no flowers will grow
in the spring.
The grounds where we always are right
are packed hard
like a yard.
But doubts and loves
dig up the world
like a mole, a plow.
And a whisper will be heard on the grounds
where the ruined
house once stood.
Blog Type: New Keynesians San Miguel de Allende, Mexico