University of Chicago economist John Cochrane has
an interesting op-ed in today’s WSJ – “The Failure of Macroeconomics”. He posits the following key question in his piece:
“Where macroeconomists
differ, sharply, is on the causes of the post-recession slump and which
policies might cure it. Broadly speaking, is the slump a lack of
"demand," which monetary or fiscal stimulus can address, or one of
structural sand-in-the gears that stimulus won't fix?”