Macroeconomics Commons^™

Do We Really Need To Start From Scratch?, Michal Gradzewicz, Krzysztof Makarski, Joanna Tyrowicz

Joanna Tyrowicz

This paper presents views and believes of the authors on the relevance of the current economic theory for the understanding of the complex world we live in. Has the crisis indeed demonstrated that as profession we are misled by the beauty of the mathematical models and the only useful, workable solutions at hand were provided in early 1930s? The purpose of this paper is to provide a review of the current state-of-the-art literature from the perspective of its usefulness in the context of economic crises. We argue that although we might be unable to answer many questions or to “predict” …