A Crisis of Beliefs puts expectations at the center of thinking about economic fluctuations and financial crises — but these expectations are not rational. In fact, as all the evidence suggests, they are subject to systematic errors of extrapolation.
.⁦⁩ says the problem with modern macro is an obsession with micro foundations. But the real problem isn't the idea of micro-foundations, but with applying micro-foundations that are disconnected from micro-behavior.
The financial crisis and the foundations for macroeconomics
Larry Summers: Something is wrong with the economics profession if events like those of 2008 do not change its thinking.
Forget about microecon foundations of macroecon. From . Households & firms don't optimize anyway.