Lars has several posts up relevant to present discussion. The good news is that we are now in the process of drilling down, and some of the mainstreamers are starting to feel the heat thanks to the bloodhounds like Lars that are on the scent and now nipping at their ankles.
The confidence fairy
This post is short and consists mostly of a dynamite Kalecki quote from "Political aspects of full employment" (1943) showing how the neoliberal argument is political rather than economic. It's short and a must-read.
Dumb and dumber in modern macroeconomics
This post answers Simon Wren-Lewis's latest with a couple of devastating quotes from Robert Solow aimed at the mainstream assumption of a representative agent maximizing utility rationally.
Krugman responding to my critique
Paul Krugman responds today to the gadget critique of Lars posted here yesterday in his blog post, Gadgets Versus Scratchpads (More Wonkery), where he argues unconvincingly that IS-LM is not a gadget. Lars promises a response tomorrow. Stay tuned.
Meanwhile, Brad DeLong jumps in with "Microfounded" And Useful Models
To have fake micro foundations for your model is not a feature, but a bug.