Reposted by Dani Rodrik
Dani Rodrik explains why good economists think in models, how models differ from theory, and why there is no one true model of the business cycle.
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Why Economists Do It With Models, Explains Dani Rodrik
Rodrik explained why good economists think in terms of models, and what are major differences between models and theory. He also told us why macroeconomists' quest to find "the one true model" on the business cycle is probably misguided.