Paul Romer on the state of economics, rational expectations and on groupthink in the field. On how theory, assumptions and math has led progress (or regress in his opinion) rather than empirical observation.
Paul Romer says he really hadn’t planned to trash macroeconomics as a math-obsessed pseudoscience. Or infuriate countless colleagues. It just sort of happened. His intention actually had been to write a paper that would celebrate advances in the understanding of what drives economic growth.