Advice to the Next Generation

The video discusses the importance of focusing on alternative micro-founded macroeconomic approaches, emphasizing the need for statistical work and econometrics. It highlights the significance of reconstructing macroeconomic dynamics based on sound behavioral hypotheses and historical accounts. The discussion also covers the role of institutions in understanding behavioral regularity in economic practices, such as pricing and investment. The video concludes by stressing the importance of balancing deductive and inductive inquiry, advocating for a data-driven approach to better explain the world.

What challenges do economists face when their theories contradict evidence?

In what way does the text propose to balance deductive and inductive inquiry in economics?