Macroeconometric models, in many ways the flagships of the economist's profession in the 1960's, came under increasing attack from both theoretical economist and practitioners in the late 1970's. Critics referred to their lack of microeconomic theoretical foundations, ad hoc models of expectations, lack of identification, neglect of dynamics and non-stationarity, and poor forecasting properties. By the start of the 1990's, the status of macroeconometric models had declined markedly,. and had fallen completely out of, and with, |