Re: Why Heterodox are subject to be losers.

["Forstater, Mathew" <ForstaterM@xxxxxxxx>]

The neoclassical theory of value and distribution *is* the neoclassical
theory of output and employment, so I don't see how one could be
compatible with Keynes and the other not.
Supply-and-demand-equilibrium-theory determines prices and outputs
simultaneously, so how do we determine outputs without prices? How is
the level of employment determined in neoclassical theory? By labor
supply and labor demand, which also determines the equilibrium real
wage.  Same as in every market--product markets and factor
markets--prices and outputs (quantities) are determined simultaneously,
by supply and demand forces.

Unless by "encompass" you mean something like Keynes meant when he said
that at full employment neoclassical theory comes into its own?  That
scarcity does apply at full employment?

-----Original Message-----
From: Bruce McFarling [mailto:Bruce.McFarling@xxxxxxxxxxxxxxxx]

 Now, the GT may well be capable of encompassing Neoclassical
macroeconomics.
I cannot see that it can encompass neoclassical microeconomics.  Neither
can it
displace neoclassical microeconomics.  And those are the two
alternatives, at
least as I see it ... swallow the dominant approach or shove it out of
the way.