Dr. Rogoff - Macroecon Challenges

This week we are studying some of the work of Dr. Ken Rogoff, a Professor of Economics at Harvard University.  Dr. Rogoff was formerly the chief economist at the International Monetary Fund, based in Washington, D.C.

The article we read is entitled, "Three Challenges Facing Modern Macroeconomics."  

Abstract:
There are three great challenges facing researchers in modern macroeconomics today;, all brought into sharp relief by the recent financial crisis.  The first is to find more realistic, and yet tractable, ways to incorporate financial market frictions into our canonical models for analyzing monetary policy.  The second is to rethink the role of counter-cyclical fiscal policy, particularly in the response to a financial crisis where credit markets seize.  A third great challenge is to achieve a better cost-benefit analysis of financial market regulation.  

His basic point is that economic analysis should include more math into the field.  This makes it easier to generalize, test, advance, and refute proposed economic theories.  It also allows successful theories to be applied more broadly than before.

I'm also going to include several videos of Dr. Rogoff on different media outlets for you to peruse:

• GPS on CNN
• Charlie Rose 
• Project Syndicate 

You can also Google "Kenneth Rogoff" under the videos section for more.