The Mainstream Obsession with Microfoundations and why it is an intellectual dead-end
Author: Steve Keen | Source: ProfSteveKeen Youtube channel
Mainstream economists insist that macroeconomic models have to be derived from microeconomic foundations. However, the microeconomics from which they try to derive macroeconomics is unsound. Firms do not face rising marginal costs, but constant or falling costs; and "well behaved" demand curves for the market cannot be derived from individual demand curves.