New Economic Perspectives has this great post White-Collar Criminologists Answer the call of Conventional Macroeconomists: An Open Letter to Dr. Kartik Athreya, Research Director of the Richmond Fed.
My colleagues who are macroeconomists can then make orthodox macroeconomics far tougher by injecting a realistic understanding of money, accounting identities, budget, and real resource constraints in nations such as the United States that maintain sovereign currencies. Once more, my colleagues’ work demonstrates that “modern macro” (DSGE) is not “tough” – it is impossible. It incorporates fictions (in the guise of “discipline”) and excludes reality in a manner that makes it impossible to model economic crises and superior means of recovery. Incorporating these two sources of revolutionary analytical changes from real world micro and macro would create a real revolution in economic theory and allow a truly modern macroeconomics with predictive ability to arise, but neither source of change will make macroeconomics “easy.” It will, however, be a considerable advance to cease making macro impossible.
It is just amazing how Nobel Prize winning economists like Paul Krugman are so resistant to putting some realism in economics theory. They are already being swept away into the dust bin of history. The realists like William Black and his colleagues could burst through the barrier if we dump Hillary Clinton who depends on economists like Paul Krugman, and vote in Bernie Sanders who depends on economists like Bill Black’s colleague Stephanie Kelton.