A fab post from Simon Wren-Lewis of Oxford University.
Just five years ago, macroeconomists talked about a new synthesis, bringing together Keynesian and Classical ideas in a unified, microfounded theoretical framework. Following the Great Recession, it appears that mainstream macroeconomics has once again split into schools of thought. This column explains why macroeconomics, unlike microeconomics, periodically fragments in this way.
I am not going into how the recession has led to return of debate over macro schools.
But why macro fragments this way?