There may be something wrong with the macroeconomic models

http://www.garp.org/?utm_content=August_25_2017&utm_source=indmemg&utm_medium=email&utm_campaign=dailynews&utmterm=article9/#!/risk-intelligence/all/all/a1Z40000003f2sEEAQ

"(Bloomberg) -- A fundamental relationship of mainstream economic theory at the heart of the Federal Reserve’s strategy for setting interest rates has been a poor guide for policy makers for at least three decades, according to a study by the Philadelphia Fed’s top-ranking economist.

The paper, co-authored by Philadelphia Fed Director of Research Michael Dotsey, shows that forecasting models based on the so-called Phillips curve, which asserts a link between unemployment and inflation, don’t actually help predict inflation."

[...]

“There may in fact be something wrong with the models, I don’t know, I think that continues to be a question that many economists are asking,”

Yeah, "I don't know", exactly.

It's time for mainstream (Keynesian) economists to get informed about the Austrian School of Economics.
--> http://www.vonmisesinstitute-europe.eu/austrian-economics/

Have a nice day!