|Brad DeLong asserted that Larry Summers review of Piketty was the best there is. So I read it. Summers learned well his micro --- static micro -- , and cannot escape from it. Summers' criticism of Piketty is bizarre. And DeLong didn't notice that. The econ departments must be closed and then thirty of forty years must pass untill that stuff all goes away.
Summers throws in this: "Economists universally believe in the law of diminishing returns. " Sounds like he's making sense, but of course he is not. That "law" as Summers goes on to explain, adds one unit of a factor and keeps all else constant. And keeps doing that. BUT NOBODY DOES THAT, Larry.
On Jun 5, 2014 Tom Walker
> Joe Stiglitz has a new book, "Creating a Learning Society: A New Approach to Growth, Development, and Social Progress."
> Last week, I sent Professor Stiglitz a letter asking him about his odd claim -- central to "efficiency wage theory" at the supposed microfoundations of New Keynesianism -- that Keynes's explanation of persistent unemployment was based on money wage rigidity. Keynes, of course, said of the wage rigidity explanation for unemployment:"It is from this type of analysis that I fundamentally differ"
> more at "Learning about Learning about 'New Keynesianism'"
> Tom Walker (Sandwichman)