[Pen-l] FYI: Skidelsky on Keynes

["Julio Huato" <juliohuato@xxxxxxxxx>]

Ted Winslow wrote:

> Keynes's forecasting "conventions", as the texts I've just quoted
> demonstrate, are understood by him to be expressions of irrationality,
> of the particular "psychopathology" that he assumes dominates
> behaviour in financial markets.  They, like the "hoarding" of money
> based on a "feeling about money" that "is itself conventional or
> instinctive", are instinctively anchored irrational means of avoiding
> anxiety.

Well, isn't that the big question?  Is there method to the madness of
players in financial markets when they are seized by those
pathologies?  If the answer is no, then perhaps solutions to the
general ontological question about the ultimate source(s) of
randomness in the universe may help us.  But I don't think social
scientists are ready to give up on their trying to pin this down
appealing to factors less detached from their area of observation.
So, I expect to see more models being tried to rationalize this
"irrationality."
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