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Channel: Feb 2014 – LARS P. SYLL
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On abstraction and idealization in neoclassical economics

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Of course macroeconomists research many things, and only a minority are using New Keynesian models, and probably even some of those do not really need the New Keynesian bit. That is the great thing about abstraction. Working with what can be called ‘flex price’ models does not imply that you think price rigidity is unimportant, […]

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