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December 21, 2008

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John Seater

Macroeconomics is nothing but dynamic general equilibrium. In my experience, both the dynamic part and the general equilibrium part are too difficult for most microeconomists, which is one reason they chose their specialty of static partial equilibrium. As one of my friends at a top economics department likes to say, macroeconomists are twice as smart as microeconomists because to do macro you have to know standard micro and then quite a bit more.

Phil Miller

That's quite strong comment, considering what a mess contemporary macroeconomics is.

Nick Rowe

Macro has always been in a mess. That's because it's harder! And it's what makes it more interesting!

There's an element of truth in what John Sester (? sorry, can't read your name easily on my screen) says though: for example, most (all?) macroeconomists can teach basic micro comfortably, but many microeconomists are scared to teach basic macro (OK John (Palmer), with a few exceptions!)

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