We consider the microfoundations controversy from the perspective of economic evolution and show that the debate can benefit from lessons learned in evolutionary biology. Although the analogy between biology and economics has been noted before, it has rarely focused on clarifying the micro-macro distinction in economic theory and modelling. The macroevolution controversy in biology has generate...

Inflation expectations of firms affect their micro-decision-making behaviors and therefore impact the macro-economy. Thus, a deep understanding how form inflation benefits achievement central bank’s policy objectives on macro-economic sustainability development. In this paper, we focus from surveys. Specifically, Naïve Expectation, Adaptive Rational VAR, Heterogeneous Static Expectation formati...