tag:blogger.com,1999:blog-2277215496195926573.post546513032358495921..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Steve Keen criticises Mosler’s Law.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2277215496195926573.post-89284660819506520572013-12-20T03:57:56.033-08:002013-12-20T03:57:56.033-08:00Steve Keen states that the traditional economists ...Steve Keen states that the traditional economists don't understand what aggregate demand is. It's not just income, it's income plus the change in private debt. Warren Mosler had amply explained his proposals for the financial sector - he's willing to go beyond Glass-Steagall in regard to regulation. Professor S.Keen does not have a "beef" with Mosler. In fact, in his recent youtube video entries, Keen mentions Mosler as part of the anti-orthodox/anti-establishment good guys, along with Hudson and the others.<br />When talking about "deficits alone won't solve the banking problems and the economy", Steve is most likely referring to Paul Krugman.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-58059356810037838062010-12-17T00:39:21.315-08:002010-12-17T00:39:21.315-08:00Anonymous - what you miss is that Mosler is also f...Anonymous - what you miss is that Mosler is also from said heterodox economic school of a Post Keynesian fashion. Not all Post Keynesians agree.<br /><br /><a href="http://chartalism.webs.com" rel="nofollow">Senexx</a>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-49335014389515374922010-12-04T04:59:26.233-08:002010-12-04T04:59:26.233-08:00Mr Musgrave,
What you miss is that Keen is from ...Mr Musgrave, <br /><br />What you miss is that Keen is from one of the heterodox economic schools that dismiss the "Ceteris Paribus" that permeates Neo-classical economics. Ceteris Paribus is a short-cut to transform dynamic economics systems into analysing a localised version with linearised model assumptions.<br /><br />Other heterodox economic schools that reject ceteris paribus are:<br />Austrian Economics (Hayekians and neo-Misesians)<br />Evolutionary Economics (neo-Schumpetarians)<br />Complexity Economics (Santa Fé)<br />Post Keynesians (what Keen is)<br />Institutional Economics (often linked to Evolutionary Economics in their professional organisation)<br /><br />They tend to reject many planks of the various Neo-classical schools, in particular<br />Chicago School (Sweet water economists)<br />Monetarists (Friedman)<br />Neo-Keynesians and New Keynesians (Paul Krugman a.o. many Saltwater economists)<br /><br />The Ceteris Paribus in neo-classical economics is a device that effectively assumes General Equilibrium styles of reasoning. So crowding out is hidden in your point of departure of your analysis. If you do not understand the implications of your initial assumption and that it can be challenged easily, then you tend to fail to get the point of some economic school that rejects that one.Anonymousnoreply@blogger.com