No subject with a foot in both the academic and public domains like macroeconomics remains unchanged for long. The search for improved explanations, and the challenge of new problems and new circumstances, keeps such subjects in a constant state of flux. Dynamic general equilibrium (DGE) macroeconomics has emerged in recent years as the latest step in the development of macroeconomics from its origins in the work of Keynes in the 1930s. It is largely an attempt to integrate macroeconomics with microeconomics by providing microfoundations for macroeconomics. Most modern research in macroeconomics now adopts this approach.
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Autor: Michael Wickens
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