Vulgar Keynesianism

Robert Higg has done a marvelous job of describing, in detail, the crucial errors of mainstream (Keynesian) economics. It’s a long paper (at least by Internet standards), so I thought I’d list the errors in short form:

  • The Whole Concept of Aggregation
  • Ignoring the Meaning of Pricing
  • Misunderstanding the Meaning of Interest Rates
  • Ignoring the Structure of Capital
  • Ignoring Malinvestment
  • Ignoring Regime Uncertainty

If you don’t understand these points, you should read the paper. If you do, you’re probably depressed that our political “leaders” are driving us into a ditch.

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