What have economists learned from the Great Recession?

Following our discussion on post-2008 Macroeconomics developments and the importance of DSGE models in part I of the interview, we asked Prof. Christiano about one of his recent and important research paper "Understanding the Great Recession". What does his model tell us about the Great Recession? Does labor participation rate have a role in the developments of the Great Recession? These are the questions we've discussed with Prof. Christiano, and he has some great answers.

Welcome! This is the first installment of our interview series "Where is the General Theory of the 21st Century?""Where is the General Theory of the 21st Century?" is an interview series with the aim...

>Professor Olivier Blanchard further explained the role empirical research on DSGE models, how to teach undergraduates macro after the Great Recession, and his research on hysteresis.