James Morley on the Failure of "Modern" Macroeconomics

Larry Meyer once claimed, I am told by perhaps-unreliable sources, that the slash-and-burn campaign conducted throughout macroeconomic theory by the Lucas-Prescott faction's main effect had been to ensure that he had next to no competitors in forecasting the current state and likely future direction of the economy--and that while this was profitable for him it was not terribly healthy for the profession.

James Morley of Macroeconomic Advisers, LLC: In a recent essay, Narayana...