KUTLU, Sinem İstanbul Üniversitesi - İktisat Fakültesi - İktisat Bölümü, Turkey

METHODOLOGY OF MODERN MACROECONOMICS – A CRITICAL PERSPECTIVE

36414

Methodology is the field which is concerned with the foundations of economics. Macroeconomics is a particularly important subject for methodological analysis for a variety of reasons. Complaints about the nature and state of the economics discipline throw considerable doubt on the capacity of macroeconomics, as well as many of its strands, to explain or address real world events or to facilitate policy evaluation. The purpose of this study is to raise concerns about the causes of failure of macroeconomics. The study aims to shed light on major methodological issues in macroeconomics and to point out that current controversies in macroeconomics have all methodological roots. It demonstrates that micro-foundations, aggregation, ceteris paribus conditions, unrealistic assumptions and extensive use of formal mathematical modeling are among the methodological fallacies behind macroeconomics’ failure. Finally, it concludes that methods of macroeconomic analysis should not be designed without explicit regard to the nature of macroeconomic phenomena.

454

Economic methodology , Macroeconomics.

Journal Of Economics an‎d Administrative Sciences

470