Macroeconomics Needs Fresh Methodology of Theorization

Bijan Bidabad

doi:10.46281/asfbr.v3i2.337

Bijan Bidabad Professor, Economics and Chief Islamic Banking Advisor, Bank Melli, Iran

DOI: https://doi.org/10.46281/asfbr.v3i2.337

Keywords: Macroeconomics, Methodology, Theorization.

Abstract

In this paper, we try to analyze the macroeconomic reasoning in different methodological issues. Subsequently, we try to touch some current macroeconomic debates on aggregations, relations, monetary and real sectors analyses. We assess that what we know about the behavior of macroeconomic variables is just our understanding from empiricism, and we have rarely found the laws of linkages among macroeconomic variables. We also conclude that successive theories have an intuitional foundation. It seems that to improve macroeconomic theories and policies, we need to be redirected to basic philosophical thinking about the macroeconomic theoretical foundation and try to rebuild a new concrete base for macroeconomics.

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