Many derivatives models are bad, macro models even worse

Most derivatives models are bad at describing the reality of price dynamics, real (robust) hedging etc.

Unfortunately macro models are probably much worse in describing reality. Central banks relaying on such models have much bigger impact on society than a option trader that relies on dynamic hedging to remove all risk in a few options and then blows up.

Can bad macro models potentially abused by the central banks blow up the economy of whole countries. I think possible yes, at least as an important contributing factor. Well I guess they are not too worried as they mainly play with others peoples money...