This is some attack by Prof. Narayana Kocherlakota who recently went from Minneapolis Fed to academia.
He is surprised to see how little has changed in macro all this while. The same ideas which have failed continue to dominate the research even now. Why should this be?
So why are macroeconomists more complacent about the last ten years than they were about the 1970s? Like people everywhere, academic macroeconomists’ views about the world are shaped by their own circumstances. And the 1970s and early 1980s were disastrous for them in a way that the last ten years have not been. In inflation-adjusted terms, the average compensation for full professors declined by more than 20 percent from 1970 to 1982. By contrast, it’s been pretty much flat since 2007, and even reached a historical high during the recession year of 2009.
Academic macroeconomists offer various intellectual reasons for the discipline to stick to its existing, now 40-year-old, paradigms. I suspect, however, that their comfort with the status quo has something to do with their relative insulation from the economic shocks of the past decade.
It is just about incentives..