Structural Modeling under Challenge

It is interesting to note that nearly three decades of new paradigms in macroeconomic theory and policy have hardly gone beyond the ivory towers of the academic world. The extent to which a scientific discipline is open to new ideas and approaches is a measure of its health. The enrichment of econometric methodology in recent decades leading to what is some times called "new econometrics" is not only natural but also welcome. The critical question however, is whether the new ideas are an outgrowth of earlier wisdom or a total negation of it. Since this is largely a matter of subjective assessment views would be considerably different.