The state of “the state of macro is not good” is not good.
In a lengthy article, Paul Krugman bemoans the collapse of macroeconomic intellectual underpinnings. This is a guy with a “Nobel” prize in economics! So now when I say so, I have some authority I can point to.
Yet, despite a brief nod to “externalities” at the beginning of his essay, Krugman says nothing about the phase change of the human population, the transition from an essentially infinite planet to an essentially finite one, nothing about nature, nothing about the environment, nothing about intergenerational or international equity. It’s all about the theory failing, and nothing at all about the theory paying no attention to salient facts. It doesn’t leave much room for optimism regarding the next theory.