Re: Keynes and competition

[Steve Keen <s.keen@xxxxxxxxxxxxxxxxx>]

Dear Kazuhiro,

From my perspective, this question is irrelevant since the model of
perfect competition itself is unsound. I have recently completed a
presentation on this topic, which I have placed on my Debunking Economics
website (www.debunking-economics.com); choose the menu items "Maths" and
then "Presentation" if you'd like to check it out.

I'm presenting it this week to a seminar at my department; it should be a
lively experience (which I hope to live through!). The material there owes
a lot to both John Legge and Geoff Fishburn on this list.

Cheers,
Steve
At 04:46 PM 5/21/01 Monday, you wrote:
> To: <pkt@xxxxxxxxxxxxxxxx>
> Subject: Keynes and competition
>
> Davidson has been insisting that the existence of involuntary unemployment
> has nothing to do with the assumption whether the economy is the perfect
> competition or the imperfect one. This means that the principle of effective
> demand is still valid even if we are in the perfect competition world.
> However, those, whom I should call the new Keyensian such as Clower or T.
> Negishi, emphasized the importance of the imperfect competition. According
> to them, the perfect competition means that the individual (not aggregate)
> demand curve is flat, and then the capitalists expect that they could sell
> the goods whatever they want. But there are no demand constraints in this
> circumstance. Therefore, they thought that there is disequilibrium in the
> goods market at Keynes' system, and it is plausible for them to assume the
> imperfect competition.
>
> What would you think about the new Keynesian thought like this?
> I think that the judgment on whether Keynes' system is perfect competition
> or imperfect one depends upon the judgment on whether there is
> disequilibrium in goods market or not. It is obvious that the new Keynesian
> thought that there is disequilibrium in goods market. What do you think
> about this opinion?
>
> **************************************
>   Kazuhiro Kurose
>   Graduate School of Economics and Business
>   Administration, Hokkaido University
>   Kita 9 Nishi 7, Kita-Ku, Sapporo, Japan
>   060-0809
>     TEL: +81-11-716-2111 ex:2786
>  **************************************

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