Comments on: Waiting for the New Keynes http://www.deliberatelyconsidered.com/2011/02/waiting-for-the-new-keynes/ Informed reflection on the events of the day Wed, 15 Jul 2015 17:00:00 +0000 hourly 1 https://wordpress.org/?v=4.4.23 By: Felipe Pait http://www.deliberatelyconsidered.com/2011/02/waiting-for-the-new-keynes/comment-page-1/#comment-5683 Thu, 03 Mar 2011 15:23:18 +0000 http://www.deliberatelyconsidered.com/?p=2706#comment-5683 When theory doesn’t describe correctly the experimental results, the thing to do is to come up with a better theory. Can you think of situations where philosophizing about general classes of theories resolved the inconsistencies? Me neither.

In this case non Keynesian theories such as Austrian efficient markets have been falsified. File with aether and phlogiston. On the other hand, it seems Keynes has held up fairly well (Krugman might add the names of Samuelson and Friedman, I guess). Economists need to work hard on theories that work, not wait for prophets.

]]> By: Lord Keynes http://www.deliberatelyconsidered.com/2011/02/waiting-for-the-new-keynes/comment-page-1/#comment-5637 Tue, 01 Mar 2011 02:06:06 +0000 http://www.deliberatelyconsidered.com/?p=2706#comment-5637 We need someone with Keynes’s radical spirit, including a willingness to look beyond the reigning way of doing economics.

The economist/economists you are searching for already exist. They are called Post Keynesians, and are people like Paul Davidson, Geoffrey C. Harcourt, Victoria Chick, Jan A. Kregel, Basil J. Moore, Sheila Dow, Thomas I. Palley, Malcolm Sawyer, Philip Arestis, Marc Lavoie, Steve Keen and Mark Hayes.

They have been challenging “reigning way of doing economics” for decades:

http://socialdemocracy21stcentury.blogspot.com/2010/07/three-varieties-of-keynesianism.html

Post Keynesianism uses the original insights of Keynes, such as non-neutral money, a non-ergodic future, subjective expectations and uncertainty, as well as Hyman Minsky’s financial instablity model and a debt deflation theory of recessions. You have the basis there for a reformed and new macroeconomics.

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