Economists seem to feel that political questions are outside their area of concern. Yet politics helps determine the value of economic policy recommendations.
Yegor Gaidar held various political offices in Russia between 1991-1994. His account is a warning to those who construct policy based on the assumption that oil prices will remain perpetually high.
Under the same systemic shock, the collapse of the international economy in 1929, different countries formulated different policy responses. What differed was the specific balance of forces among local interest groups.
This Bank of England article considers the strengths of agent-based modelling, which explains the behaviour of a system by simulating the behaviour of each individual agent in it.
A critical discussion of the theoretical, empirical and political economy pitfalls of the DSGE-based approach to policy analysis.