Keynes' Critique

[Paul Davidson <PB108928%UTKVM1.BITNET@xxxxxxxxxxxxxxxxx>]

FROM:  Paul Davidson
*** Resending note of 10/26/94 11:40
To: PKNET   --CMSNAMES

FROM:  Paul Davidson
"      Economics Department
"      523 Stokely Management Center  (615) 974-4221
Herb is incorrect in repeating the old canard that Keynes's GT has no microfoun
dations. Sidney Weintraub provided the microfoundations in his EJ and AER
articles in the 1950s and his book AN APPROACH TO THE THEORY OF INCOME
DISTRIBUTION. Gene Smolensky and I tried to reduce these microfoundations to
the textbook level in our 1964 AGGREGATE SUPPLY AND DEMAND ANALYSIS. The
microfoundations are there for those who want to see them even in Volume 13 of
the COLLECTED WORKS OF KMK and in Ch 6 and its Appendix in Keynes's GT. I
have tried to update these in my POST KEYNESIAN MACROECONOMIC THEORY with
its emphasis on the axiomatic foundation of Keynes's GT and why the classical
microfoundations are merely a special case of Keynes's axiomatic GT.

Have a good day!____Paul Davidson
))))_ fax # (615) 974-1686