[PEN-L:3802] Re: stock market & investment

[blairs@xxxxxxxxxxx (Blair Sandler)]

At 12:37 PM 4/16/96, Doug Henwood wrote:
>The other day, I asked loyal Keynesians to comment on Morck, Shleifer, and
>Vishny's 1990 paper showing the stock market to have little effect on
>investment - a very damaging empirical refutation of JMK's line on the
>malign influence of sentiment on the real world.
>
>That was my second try in the last year or so, and I've received not a
>single response. Either I'm preumptuous in expecting one, or Keynesians
>have no good defense of the Master's thesis - surely one of the more
>important points in the General Theory. I guess I'll have to write in my
>almost-finished Wall Street book that JMK was all wet, and his modern
>followers are too.

I have to say, Doug, I'm *really* looking forward to reading your book.

Blair

:-)