All economies and markets are set in motion with relativity and opposite forces that set them towards the unitary goal of all entrepreneurs – Profit. In a market the common goal doesn’t seem common. A unit voting structure will not work as a unit to give aggregated common results. Hence forms the basis of the theorization of economic theories, the theorization which is its own predicament.
The DSGE (Dynamic Stochastic General Equilibrium) Models fail to accurately interpret and consider the thorough non-linear dynamics that are inherent and give counter results to the implied results of DSGE Models. Incorporation of all variables, externalities and thus satisfying the Lucas Critique seems to be the only muddle DSGE has cleared. The failure in forecasting of the many recessions makes DSGE Modeling and Macro Economic Modeling in the larger picture, obsolete and incorrect. On the lighter side, DSGE Models may have worked if political…
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