Re: Colander and New Keynesian Economics

[FAC_BROSSER@xxxxxxxxxxxxxxxx]

Response  to Keen:
     The term "extrinsic" in the sunspot literature is not the
same as the term "exogenous."  It means that they are factors not
based on technology or preferences for final goods demands that
are the traditional underpinnings of the Arrow-Debreu general
equlibrium.  They may well evolve "endogenously" in response
to market/historical processes in a manner distinct from technology
and specific demands.  I think this is exactly in the spirit of
Minsky and  also the Keynes "beauty contest" model.  I note that
all of these literatures were/are very concerned with the
phenomenon of speculative bubbles.  I also note that the Grandmont
model is strictly endogenous, if allowing for "extrinsic" elements
as defined above.  I am not aware that New Keynesian models of the
coordination failure type assert, assume, or presume stable
equilibria.  Some are, some are not.
     Have multiple good days!
Barkley Rosser,
JMU