Confidence in Keynes and Hayek: Reply to Burczak |
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Authors: | Roger Koppl William Butos |
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Institution: | 1. Fairleigh Dickinson University , Madison, NJ, 07940, USA;2. Trinity College , Hartford, CT, 06106, USA |
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Abstract: | We agree with Burczak's identification of the crucial issues. We disagree with his interpretation of them. We expand our defense of the claim that Keynes was a rationalist. We introduce the "horizon principle" to critize Keynes' dichotomy between short-term and long-term expectations. We question the statistical simile guiding some Post Keynesian dsiscussions of uncertainty. We point to the role of evolution in shaping conventions that fit the economic environment in a world with novel events. We think the evidence favors our view over Burczak's. Finally, we put in a plea for framing the issues in a way that facilitates empirical testing. |
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