TITLE:
Our Economy
AUTHORS:
Christian Müller
KEYWORDS:
Fundamental Uncertainty, Subjectivity, Financial Crisis
JOURNAL NAME:
Modern Economy,
Vol.2 No.4,
September
21,
2011
ABSTRACT: I discuss the strengths and weaknesses of the current predominant approach to macroeconomic modelling of asset prices and suggest an alternative perspective. This alternative rests on the insight that the economy is the result of individual decisions. The industry standard has it, however, that individual action is ruled by objective, general laws instead. Changing the point of view allows to reconcile numerous puzzles and paves the way for a promising new research agenda.