A long-standing dream of economists was to build a massive model of the economy. One with hundreds of supply and demand equations. A supply and demand system for each input, intermediate good, and final product. One would only need to estimate the relevant elasticities and a few simple parameters to construct an economic crystal ball. It would be able to make accurate forecasts and useful policy prescriptions. Most economists wished this at one point. Slowly, though, the era of optimism in structural macroeconomic forecasting during the 1950s and 1960s became an era of doubt during the 1970s and 1980s.
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