As a result, not surprisingly, macroeconometric
models and the Keynesian theory that underlay them came under severe attack
from theoretical as well as from practical viewpoints. While criticisms of Tinbergen’s pioneering
attempt at macroeconometric modelling were received with great optimism and led to the development of new and sophisticated estimation techniques and larger and
more complicated models, the disenchantment with macroeconometric models in 1970’s
prompted a much more fundamental reappraisal of quantitative modelling as a tool of
forecasting and policy analysis.