Article: Reports summarize economics study results from C.A.E. Goodhart and co-researchers.

According to a study from London, the United Kingdom, "Lionel Robbins was concerned about the methodology of economic science."

"When he discussed the relationship between theory and 'reality', two of the examples of inappropriate relationships were taken from monetary economics. Such shortcomings continue," wrote C.A.E. Goodhart and colleagues.

The researchers concluded: "Among the worst are: (1) IS/LM: whereby the monetary authorities set the monetary base, and the interest rate is market determined; (2) the monetary base Multiplier of bank deposits, and the role of reserve ratios; (3) the current three-equation neoclassical consensus, assuming perfect ...

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