Lars P. Syll — Polanyi In Addition To Keynes On The Stance Of ‘Self-Adjusting’ Markets

Paul Krugman withal wrong. The mainstream model of an economic scheme based on full general equilibrium, rational utility maximization, in addition to coin neutrality is ane of a possible footing that doesn't be in addition to can't be inwards a monetary production economy.

There is zip incorrect alongside constructing models of possible worlds, and, inwards fact, all models be inwards possibility space, non existent space. But it is incorrect to claim or imply that such models of possible worlds use to the existent footing when at that topographic point is show that they produce not. This is what scientific discipline is about, in addition to it is the divergence betwixt doing scientific discipline in addition to doing mathematics.

Conventional economical theory is largely mathematical alongside an impeccable logic pedigree from axioms, but it non scientific inwards that it lacks an empirical warrant. The models are attractive but vacant.

Lars P. Syll’s Blog
Polanyi in addition to Keynes on the sentiment of ‘self-adjusting’ markets
Lars P. Syll | Professor, Malmo University