Sunday, July 3, 2011
Posted by dkuehn at 1:51 PM
Here. It touches on the microfoundations and methdological individualism fetish that bothers me so much too. It's very easy for microfoundational thinking to lead people astray. For example, the microeconomic convention that unemployment is a "labor surplus" can lead to bad macroeconomic presuppositions. The microeconomic use of money as a numeraire medium of exchange (and nothing else) also creates bad macroeconomic habits.