ABSTRACT
Economic methodology follows that view; economic researchers may have trouble deciding what the truth is, but somehow, were it to be revealed to them, it would be the truth they were searching for. This chapter suggests that the best way to shed light on the current state of economics is to look at the economics profession through an economic lens. The state of economics has come about by natural evolution in a set of institutions in which economists choose models that maximize their welfare. The Camelot days ended in the 1970s; researchers left Keynesian macroeconomics as the rich article veins became exhausted. AS/AD analysis, as presented in most textbooks, is, quite simply, a retrograde analysis that provides students with a crutch to make the average student think that he or she understands how inflation fits into the Keynesian model. A downward-sloping IS curve is inconsistent with the current AS/AD models.
