This paper asks the question: Why has the "general-to-specific" cointegrated VAR approach as developed in Europe had only limited success in the US as a tool for doing empirical macroeconomics, where what might be called a "theory comes first" approach dominates? The reason this paper highlights...

The thesis of this paper is that economist's current policy narrative, which I call the state/market control policy narrative, is holding us back in our search for creative, imaginative, and workable policy solutions to our current problems. It is time to shift to a new complexity policy...