Re: Objective vs Subjective: Two approaches to money value.

["Alan G. Isaac" <aisaac@xxxxxxxxxxxx>]

First of all, they have "shown" no such thing.
They have simply claimed it.
And for the record, the claim is in Mises
and is fully developed in Shackle.

Second of all, the claim is circumscribed.
For example, Davidson has no problem with
the idea that you can have rational expectations
when playing craps or roulette.
In fact, if I understand correctly, he allows in
addition a rational basis for expectations in a
wide variety of "routine" decisions.

Thirdly, the claim that fundamental uncertainty
removes any basis for "rational" decision making
requires a thorough explication of the underlying
notion of rationality. What is true is that NC economists
have given us no indication of what rational behavior
in the face of fundamental uncertainty would look like,
but NC economists work with a very odd notion of
rationality. And in any case, others have explored this.

--Alan G. Isaac
 
 

Harry Veeder wrote:

> As Keynes and Davidson have shown expectations can have no rational basis
> whatsoever since the future is fundamentally uncertain.