Narayana R. Kocherlakota, President of the Minneapolis Fed, writes,

modern macro models are designed to be mathematical formalizations of the entire economy. This ambitious approach is frustrating for many outside the field. Many economists like verbal intuitions as a way to convey understanding. Verbal intuition can be helpful in understanding bits and pieces of macro models. However, it is almost always misleading about how they fit together. It is exactly the imprecision and incompleteness of verbal intuition that forces macroeconomists to include the entire economy in their models.

Thanks to Greg Mankiw for the pointer.

I think being precisely wrong is worse than being vaguely right, but then, that’s why Kocherlakota is President of the Minneapolis Fed and has an outstanding reputation in academia, while I write a blog. I stand by my remarks on the econometrics controversy.