Re: Colander and New Keynesian Economics

[FAC_BROSSER@xxxxxxxxxxxxxxxx]

Rejoinder to Steve Keen:
     I agree on your characterization of what NK leads to
(fundamental uncertainty).  If you wish to say that this
implies a contradiction with its axioms I can see the argument.
     That NK may show uncertainty problems arising from
multiple equilibria and PK may be more useful for out-of-
equilibrium analysis does not seem to me to negate the
complementarity of the two.  One may argue that NK is irrelevant
because only out-of-equilibrium analysis is interesting.  But
that does not say they are mutually exclusive/contradictory
and therefore incapable of being complementary.
     I agree that in general Minsky prefers a situation in
which speculative pyramids will not build up at all.  I cannot
cite chapter and verse, but I do believe that he has in places
argued that the Fed should be prepared to be a "fire dept."
although he clearly sees its preferred role as being "fire
prevention."
Barkley Rosser
James Madison University
PS:  Have as many nice days as you wish.