Dr. Richard Wagner, professor of economics at George Mason University, recently released a new book titled Macroeconomics as System Theory. Dr. Abigail Devereaux, Research Fellow at the Institute for the Study of Economic Growth (ISEG), had number of close relationships with professors during her time at George Mason. In fact, Dr. Devereaux featured in a discussion on the new book recently.
ISEG Research Fellow Devereaux Featured on Scholarly Panel on Hayek Program Podcast Discussing “Macroeconomics As Systems Theory”
On February 24, 2021, Dr. Abigail Devereaux appeared on the Hayek Program Podcast. Notably, the episode focused on a panel discussing the book “Macroeconomics As Systems Theory”. In addition to Dr. Devereaux, the scholarly panel featured Peter Boettke, Richard Wagner, Erwin Dekker and William Luther. By and large, Dr. Devereaux discussed how the book established several keystone ideas for the theory and what might come next.
Listen to the appearance at the Hayek Program.
About Macroeconomics as Systems Theory
The concept of aggregation informs conventional macroeconomics theory. That is to say, the cornerstone is to average and develop relationships economy-wide. In other words, the focus on a national economy is on a collection of aggregated variables. For example, these might include:
- output
- employment
- investment
- price levels
Conventional macroeconomic theory seeks to develop relationships between and among the variables. In general, the “more complex” micro-level leads into the macro-level. Richard Wagner’s book, Macroeconomics as Systems Theory, takes a new approach.
Wagner views the macro-level variables through a social-theoretic approach. For example, this approach uses theories explaining the actions and behavior of society. This includes sociological, political and philosophical ideas. Wagner argues social institutions, conventions and processes shape standard macro variables. In turn, these generate interaction and create more.
As you can imagine, this is a new approach. It is also a massive difference in analytical perspectives. Rather than treating the micro-macro relationship as one of “parts-to-whole”, the approach views macro as far more complex than micro.
