Micro-Foundation of Macroeconomics | Economics
The lack of clear connection between macroeconomics and microeconomics has long been a source of controversy and discontent among economists. K. J. Arrow (1967) called it a 'major scandal' that neo-classical price theory cannot account for such macroeconomic phenomenon as unemployment. R. Lucas and T. Sargant (1979) argued that Keynesian Macroeconomics is 'fundamentally flowed' by its lack of firm micro [...]