Re: Colander and New Keynesian Economics

[FAC_BROSSER@xxxxxxxxxxxxxxxx]

A further defense of NK, especially the Nonlinear Variety:
     In an earlier note I conceded the "irrelevance" of the
Grandmont real balances model in an uncertain universe.  The
real point, however, is that he showed that even if one starts
with perfect foresight one can get chaotic dynamics with
nonlinearity.  In such a situation the perfect foresight assumption
becomes negated.  In short, nonlinearity becomes a powerful
underpinning for the problem of fundamental uncertainty, more
powerful than simply citing Keynes whom, as we have noticed, is
not universally respected, and even where he is must be observed
to have sometimes contradicted himself (like Marx, the Bible, etc.)
Barkley Rosser
JMU