3 ms·
Looking at problems like the Backus–Kehoe–Kydland puzzle and the PPP Puzzle I see a reliance on the concept of shocks. If these shocks are treated as exogenous
by jackcosgrove 4y ago
Looking at problems like the Backus–Kehoe–Kydland puzzle and the PPP Puzzle I see a reliance on the concept of shocks. If these shocks are treated as exogenous factors, that's a bit disappointing. Hopefully one day economics can be advanced enough to do away with the concept of exogeneity barring sunlight and asteroids.