This is really bad. My comment:
"I think a key to your mystification is that every Keynesian would agree
fervently with you that these are not "incidental doohickies". In fact
people have been telling you this for years now, Don. For some reason
you insist on supplying both the argument and the counter-argument in
Keynes has several pages on periods of
production, referencing Bohm-Bawerk in fact, in the section on capital
theory. He does not disagree at all with Bohm-Bawerk on the importance
of periods of production. What he says is that this alone is not
sufficient for a capital theory.
I'm also confused by the
claims about a capital stock. Please people - don't take Don's word for
it. Read up on the determinants of the marginal efficiency of capital.
It has everything to do with the capital stock and then the MEC
(together with the interest rate) determines the flow of investment
(which of course has ramifications for aggregate demand).
if nobody has ever responded to you "you're right, we do say this, and
we can safely ignore all this microeconomics stuff", maybe it would be
worth considering an alternative - that you've misdiagnosed the point of
Don is quoting White's new book, too, and it makes me worried about the text. Jonathan - I'd be very interested in your thoughts when you get to reading it.
I will address a lot of these points in my Critical Review article. I also have an outline of a "Keynesian public choice theory" - what he thought about how political institutions constrained the economy (he said a lot, and I don't think these points are lost on modern Keynesians either just because they aren't buddies with those who label themselves "public choice theorists") - but my outlines often just stay outlines.
You guys don't always agree with what I have to say about what some Austrians thought (Jonathan recently took issue with my spin on ABCT, but I think others of you thought it was reasonable), but I think I try to defend it pretty well. I also don't think I put absurd claims in Austrians' or libertarians' mouths. If I ever do - please bring it to my attention forcefully.
The Federal Reserve: I Repeat Myself
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