"When historians of science look back on the late twentieth century in economics I suspect they will view macroeconomists' preoccupation with the "correct" speci?cation of expectations something like the medieval effort to ?nd philosophers' stones or the Holy Grail."
It would probably be worse. Self-referentiality and games of estimation are euphemisms to hide the fabrication of "incorrect" expectations to be punished. These incorrect expectations were garnished with the imprimatur of mathematical formalism whose false credibility were part of the estimation game. Krugman's exculpatory diagnosis of "bemusement with mathematical beauty" conceals befuddlement via mathematical rigor, a very useful step in the manufacture of expectation.
This professional crime is beyond negligence.
Mike Beggs wrote:
> By the way, for those who prefer the written paper to the YouTube,
> it's here:
>
> http://ineteconomics.org/sites/inet.civicactions.net/files/INET%20C%40K%20Paper%20Session%206%20-%20Foley.pdf