No subject with a foot in both the academic and public domains like macroeconomics
remains unchanged for long. The search for improved explanations,
and the challenge of new problems and new circumstances, keeps such subjects
in a constant state of flux. Dynamic general equilibrium (DGE) macroeconomics
has emerged in recent years as the latest step in the development of macroeconomics
from its origins in the work of Keynes in the 1930s. It is largely an
attempt to integrate macroeconomics with microeconomics by providing microfoundations
for macroeconomics.
