Readers (and, I assume, economists) wonder why macroeconomists are so wrong so often.
Perhaps an increasingly important factor is the increasing role of China in the global economy.
In our mad dash to participate in the economic renaissance in China, we seem to put on blinders to the fact that China is a communist country and the preeminent command economy that the World has ever been a party to.
The old rules of supply and demand and clearing prices, etc. -- particularly at the margin where macroeconomists largely play -- seem to no longer have even the semblance or an efficient market.
Many would agree with China's impact on absorbing global manufacturing -- and now its profound influence over commodities, energy, etc. Its might in luxury good ascend -- and when they make pronouncements that they will buy Greek debt, China begins to implement their sway on the global financial and political landscape.
Certainly, many other economies (and multinational companies) have "command" characteristics. However, none have near the scale that China has already attained.
I wonder if economists might consider adjusting their teachings and prognostications (including reducing the conviction behind macroeconomics' predictive possibilities).
