John Kay: Consistency and Rigor (1/5)

The video discusses the state of economics, focusing on the ideological debates reminiscent of the 1930s, such as austerity versus stimulus. It highlights how political views influence economic positions and critiques the limited advancement in macroeconomic policy debates. The discussion includes modern macroeconomic theories, particularly the dynamic stochastic general equilibrium model, and the influence of economists like Lucas and Prescott. The video also examines the scientific methods used in economics, emphasizing the role of simplifying assumptions and the need for judgment in applying models to real-world scenarios.

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