Information, Sticky Prices and Macroeconomic Foundations

For decades, macroeconomists have listened to criticism from their professional colleagues about the absence of micro-foundations from most of what they say and do. A typical comment is: "I don't understand much about macroeconomics; how is it related to economics?" A possibly less-frivolous comment is that nothing can be said about macroeconomic policy until economists develop a macroeconomic theory from a microeconomic foundation. Anything less is branded "ad hoc" and dismissed.