Theory and Practice in a Sensible Economic Policy Mix: A Glance at Willi Semmler’s Contributions to Empirical Macroeconomics

Abstract

The Global Financial Crisis, which peaked in late 2008, accentuated the urgent need for reconciliation between the theoretical and practical components of macroeconomic theory. Worldwide, apart from a few, economists faced the profession’s dire challenge to develop an ability to think outside conventional macroeconomic equilibrium models. Such ability, of course, pre-supposes an open approach to dynamic macroeconomic modeling, one founded in a profound understanding of the diverse currents within the many traditions of economic thought. One of such economists of the highest caliber is Professor Willi Semmler, in whose honor this book is compiled, celebrating his life and grand scientific accomplishments. His work encompasses research on problems of dynamic modeling, computational methods in economics and finance, financial economics, exchange rate, credit risk, and ultimately climate change and the linkages between financial and “real” economic activity. Offering a rundown of the book’s structure, this chapter mainly discusses Dr. Semmler’s achievements across three pillars of academia and science: teaching, research, and mentorship.