Re: Reynolds on Keynes, Minsky & Vulgar Keynesianism

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

Reynolds seems rather unwilling to deal with the overwhelming
evidence against the Permanent Income Life Cycle Hypothesis
that has emerged in the empirical literature.  A willingness
to disregard evidence in conflict with his ideology matches
my recollections of him (admittedly more than two decades old).
Alan Isaac

On Fri, 25 May 2001, Greg Ransom cites Reynolds as follows:
>      After Keynes, Milton Friedman and Franco Modigliani received
> Nobel Prizes for demonstrating that consumption depends
> on long-term income and wealth, not ephemeral windfalls from
> rebates or a temporary cut in withholding. A one-time "rebate"
> that is unrelated to productive activity cannot even be expected
> to stimulate consumption, much less production. Since the
> rebate has no effect on permanent income, it can have no significant
> effect on consumption.