| 00:00 - 00:03 | Bob Lucas has released a new paper |
| 00:04 - 00:05 | it turns out all macro models |
| 00:05 - 00:07 | are useless without microfoundations |
| 00:08 - 00:12 | stagflation has rendered the philips curve useless |
| 00:12 - 00:15 | quantitative policy evaluation is the only way |
| 00:17 - 00:19 | years of analysis... |
| 00:19 - 00:21 | the Philips curve dead... |
| 00:24 - 00:26 | sir, |
| 00:27 - 00:28 | ...it's over... |
| 00:31 - 00:33 | people are forward looking |
| 00:34 - 00:36 | they take expectations into account |
| 00:53 - 00:58 | any students not involved in macro, macro theory, or finance, leave the room |
| 01:13 - 01:15 | why can't people react to spot inflation |
| 01:15 - 01:17 | stupid, rational consumers |
| 01:18 - 01:23 | ruining years of macroeconomic research. |
| 01:25 - 01:28 | all of macro theory, now useless |
| 01:29 - 01:31 | micro-founded models |
| 01:31 - 01:34 | what the fuck is that |
| 01:34 - 01:37 | does Bob Lucas think we're all John Nash? |
| 01:37 - 01:40 | some of us like simple math |
| 01:40 - 01:42 | but Bob Lucas has a nobel prize |
| 01:42 - 01:46 | stick your Nobel up your hairy ass |
| 01:46 - 01:48 | the models make bad predictions |
| 01:48 - 01:52 | not all of us care about predictive power |
| 01:53 - 01:54 | some of us like the aggregate |
| 01:56 - 01:57 | exploration of macro relationships |
| 01:57 - 02:00 | without diving deep into the psyche of |
| 02:00 - 02:03 | individual consumers |
| 02:04 - 02:08 | and now... |
| 02:08 - 02:13 | We're all screwed. None of us learned proper econometrics. |
| 02:14 - 02:16 | Bob Lucas has to go and fuck it all up. |
| 02:17 - 02:21 | All of the hard work, garbage, useless! |
| 02:27 - 02:29 | I was a big shot at the academy |
| 02:30 - 02:34 | I was respected for my models |
| 02:34 - 02:36 | and now its over. |
| 02:41 - 02:42 | It should be me winning |
| 02:43 - 02:47 | writing letters about the inadequacy of the field |
| 02:48 - 02:53 | it should be me criticizing |
| 02:54 - 02:56 | but these, analytical chicago economists |
| 02:56 - 02:59 | have to rip us macro theorists to pieces |
| 03:00 - 03:02 | do they even think about our careers? |
| 03:04 - 03:07 | its ok, we'll learn DSGE |
| 03:14 - 03:16 | will I even get tenure now? |
| 03:19 - 03:23 | its too late for me to learn DSGE |
| 03:25 - 03:26 | I'm too old |
| 03:31 - 03:33 | our time is done |
| 03:40 - 03:46 | but if Bob Lucas doesn't follow his own advice |
| 03:46 - 03:49 | he's going to get called out |
| 03:53 - 03:56 | maybe by Paul Romer |
