The Macroeconomic Problem

Abstract

Does it apply to economics? In mathematical natural sciences, such as physics and chemistry, theoretical development has indeed been largely determined by observed facts. In economics the situation is a little different. Economics has become an influential practical science, like medicin and law. It is like medicin and law a profession, where professional solidarity plays an important role. Being a profession and a science simultaneously implies that theorizing in economics is partly determined by the general wisdom of the day, as accepted in the profession. Because of this important professional connection the basic theoretical assumptions at any given time tend to be widely accepted over most of the profession. It follows that new fundamental ideas have come slowly in economics, where theoretical foundations carry that professional responsability.

The world of observations uniquely determines the theoretical system [in mathematical sciences] … but there is no logical way leading to the fundamental laws, only intuition. (Einstein in his speech in honor to Max Planck in 1918.)