Re: PKT Daily Digest, #767

[Bruce McFarling <ecbm@xxxxxxxxxxxxxxxxxxx>]

On Sat, 13 Apr 2002 12:38:48 +0100, Harry Veeder
<eo200@xxxxxxxxxxxxxxxxxxx> wrote:

>The chain the reasoning assumes the legitimacy of the
>composition i.e. that individual decisions can be "added
>up". If the composition is not justified then the chain
>reasoning is irrelevant, even if it is logical sound.

Which chain of reasoning.  The GT chain of reasoning
certainly does not ASSUME the legitimacy of the
composition.  It explicitly argues which transactions
enter into the total, which fall out, and why the
total includes only those transactions.  This response
sounds like a confusion between Keynes' GT argument
and a neo-"Keynesian" or new-"Keynesian" argument that
accepts neoclassical theory for flawed microfoundations
and then tries to build a more or less plausible
macro-economics on a foundation of sand.

Virtually,

Bruce McFarling, New Lambton, NSW
ecbm@xxxxxxxxxxxxxxxxxxx