Article: Economic theory and policy: some thoughts.

This paper discusses the role of economic theory in economic policy formulation and some of the limitations on the policy applications of economic theory. The author offers some thoughts on the areas where economic theory and policy advice are currently making their biggest contribution today and where they might better do so.

Keywords: Policy advice, Relationship between economic theory and policy

JEL Codes: A1 E4

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I was asked to contribute some thoughts on the role of economic theory in economic policy formulation; and the limits to theory's application--a rather amorphous topic, in which responses are more likely to be ...

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