Lord Keynes — Lavoie on Administered Prices

The consequences of this are the following:

(1) one of the major (alleged) mechanisms driving an economy to Walrasian full employment equilibrium collapses and the whole notion that market economies have a strong tendency to general equilibrium must be abandoned, and

(2) the Austrian (or Misesian) notion that market economies have a strong tendency to economic coordination effected by firms’ adjusting their prices towards market clearing values is fundamentally flawed and wrong.

As we've argued many times here at MNE.

Social Democracy For The 21St Century: A Post Keynesian Perspective
Lavoie on Administered Prices

Lord Keynes