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.
>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.
The honorable guest for this installment is Atif Mian, Theodore A. Wells '29 Professor of Economics and Public Affairs at Princeton University, and Director of the Julis-Rabinowitz Center for Public Policy and Finance at the Woodrow Wilson School. Professor Mian will first discuss if there are any "revolutionary" changes happened in macroeconomic academia since the Great Recession.