Macro as Coordination Failures

Instead of blaming recessions on slowly adjusting wages and a single 'labor market,' Peter Howitt (after Clower and Leijonhufvud) models economies as many interlinked markets where trading happens out of equilibrium and expectations must coordinate across time. Busts emerge when coordination breaks down, not because prices are sticky in one representative‑agent world. This view fits episodes like the deflationary 1930s better than wage‑stickiness stories and asks for models that track multi‑market search, rationing, and networked spillovers. — It redirects policy and modeling away from sticky‑price fixes toward restoring coordination and expectations across numerous markets during crises.