It Looks Like a Great House. Why Does the Basement Always Flood?

Come on, guys, somebody take it to the Next Step.

Matt Y comes closer than anyone else to getting to the truth of the problem with Macroeconomics. Following Justin FoxSteven Levitt’s summary, Matt asks the next question:

So why should it be that “in the current regime, if [macro models] are not meticulously constructed from ‘micro foundations,’ they aren’t allowed to be considered”?

There’s a hint in the title of this post.

Edited to fix attribution.