Wednesday, December 21, 2016

David Fields — Review of Keynesian Economics: Free-access articles

Free is good. Several articles of interest for those interested in MMT and monetary economics. Lot of of other things that may be of interest, too.

Radical Political Economy
Review of Keynesian Economics: Free-access articles
David Fields

1 comment:

AXEC / E.K-H said...

Keynesianism is broke: Get over it!
Comment on David Fields on ‘A Lecture by Robert Skidelsky on Keynes’s General Theory’

Keynes based macroeconomics on logically and conceptually defective foundations and neither Post Keynesians nor New Keynesians nor Anti-Keynesians have realized his foundational blunder in 80 years.#1

Keynes defined the formal core of the General Theory as follows: “Income = value of output = consumption + investment. Saving = income - consumption. Therefore saving = investment.” (p. 63)

This two-liner is defective because Keynes never came to grips with profit: “His Collected Writings show that he wrestled to solve the Profit Puzzle up till the semi-final versions of his GT but in the end he gave up and discarded the draft chapter dealing with it.” (Tómasson et al., 2010)

It is pretty obvious that an economist who cannot tell the difference between the fundamental economic magnitudes profit and income is a laughing stock. This holds for Keynes and to an even higher degree for After-Keynesians who have not spotted the foundational blunder in the past 80 years. Skidelsky is a case in point.

Keynesianism is provable false and therefore indefensible. Economic policy guidance of Keynesians has no sound scientific foundation and grave unintended consequences.#4

Egmont Kakarot-Handtke

#1 For details see cross-references Keynesianism
#2 See ‘The final smackdown of blahblah-Keynesianism’
#3 See ‘Macroeconomics ― dead since Keynes’
#4 See ‘Rethinking deficit spending’