Do DGSE models suck?

DGSE stands for Dynamic General Stochastic Equilibrium, basically it's very complicated models that try to explain what's going on in the economy. These models are nowadays widely used in policy relevant institutions such as the central banks. For several years, their reliability has however been  put into question, notably for their lack of forecast of the …

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Public spending – was Keynes right?

As we have seen, one can ask the question whether policies that followed the financial crisis were truly beneficial and well-oriented. After 2008, austerity has been on the lips of a large part of economic deciders. 8 years after, one cannot say that it has done miracles. One can thus honestly ask whether mistakes were made. …

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The importance of going beyond academic models

In this article, I will try to convince you that what is being taught on the academic level is not sufficient to understand current issues in economics (modeling). The last financial crisis painfully showed us how wrong many people were. Many professions simply failed to see what was happening. Of course one can blame wild …

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