Munich Personal RePEc Archive

Uncertainty in creating macroeconomic policy: knowledge, skills and (un)predictability

Nenovski, Tome and Makrevska, Elena (2012): Uncertainty in creating macroeconomic policy: knowledge, skills and (un)predictability. Forthcoming in:

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Abstract

“If economists could manage to get themselves thought of as humble, competent people on a level with dentists, that would be splendid.” (Keynes, 1931). Then macroeconomics would transform into a useful and routine type of engineering, which will prevent the emerging of recessions. However, the appearance of stagnation and enormous financial crises started to change the economy postulates. Even though it poses significant findings, macroeconomics is not an exact science which has the ability to completely and accurately presuppose the actions of the economic entities and employ one general solution in every situation. The unpredictability of their conduct designates the dynamics of the science of macroeconomics and the need to adjust it to the contemporary economic status. The ongoing crisis undoubtedly proves that.

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