Excellent summary of the recognition of the classical fallacy by Keynes, what followed, and why neoclassical economics is proving so difficult to dislodge even though it has been discredited.
Note: This is not the only fallacy that plays a part in neoclassical assumptions. The fallacy of composition is another, as Keynes also observed.
Social Europe
'Fridays for Keynesianism'
Peter Bofinger | Professor of Economics at Würzburg University and a former member of the German Council of Economic ExpertsSocial Europe
'Fridays for Keynesianism'
See also
Brave New Europe
Paul Romer: The Dismal Kingdom – Do Economists Have Too Much Power?
Mathew D. Rose
Links on Peter Bofinger on ‘Fridays for Keynesianism’
ReplyDelete“For economics as a science, the neoclassical synthesis has led to huge reputational damage.” Not only this, Keynesianism, too, has a serious reputational problem. Economics is proto-scientific garbage to this day.
Keynes ― the poster boy for the weakness of the economist’s mind
https://axecorg.blogspot.com/2019/10/keynes-poster-boy-for-weakness-of.html
How Keynes got macro wrong and Allais got it right
https://axecorg.blogspot.de/2016/09/how-keynes-got-macro-wrong-and-allais.html
What Keynes really meant but could not really prove
https://axecorg.blogspot.de/2016/05/what-keynes-really-meant-but-could-not.html
Who or what exactly did Keynes save?
https://axecorg.blogspot.com/2016/11/who-or-what-exactly-did-keynes-save.html
Macroeconomics ― dead since Keynes
http://axecorg.blogspot.com/2016/12/macroeconomics-dead-since-keynes.html
For details see cross-references
https://axecorg.blogspot.com/2016/09/keynesianism-cross-references.html
Egmont Kakarot-Handtke