Macroeconomics, despite its increasing technical sophistication, has yet to bridge the credibility gap that began to widen during the stagflationary 1970s. Is confidence in macroeconomics collapsing because of faulty policy implementation or because of the weight of its own rarefied assumptions?

Ben W. Bolch is Robert D. McCallum Distinguished Professor of Economics at Rhodes College, in Memphis, Tennessee.
Economic PolicyEconomy