S. Abu Turab Rizvi, Not Steve Keen

Notice the point about the need in neoclassical theory to assume that preferences satisfy Gorman's assumptions of identical and homothetic (non-varying with income) preferences:

"Extensions of the basic arbitrariness results to configurations of preferences and endowments which are in no way 'pathological', and are in fact more and more restrictive, indicate the robustness of S[onnenschein-]M[antel-]D[ebreu] theory.

For instance, an assumption which is often made to improve the chances of meaningful aggregation is that of homothetic preferences, which yields linear Engel curves and so no complicated income effects at the level of the individual. However, with only a slight strengthening of the requirements of Debreu's theorem, Mantel (1976) showed that the assumption of homotheticity does not remove the arbitrariness of A[ggregate] E[xcess] D[emand functions].

Moreover, the possibility that consumers have to be very different, or that unusual endowment effects need to take place, in order for SMD-type results to hold was refuted by Kirman and Koch (1986): even supposing consumers to have identical preferences and collinear endowments does not remove the arbitrariness of the AEDs. Of course, if preferences are simultaneously identical and homothetic, AED is a proportional magnification of individual excess demand (Gorman, 1953; Nataf, 1953) and the whole economy behaves as if it were an individual (obeying the Weak Axiom of Revealed Preference in the aggregate), but this is an extremely special situation. The Mantel and Kirman-Koch theorems effectively countered the criticism of SMD theory raised by Deaton by showing that the primitives can be arrayed in ways which on the face of it are very congenial towards generating well-behaved results, yet the arbitrariness property of AEDs remains." -- S. Abu Turab Rizvi, "The Microfoundations Project in General Equilibrium Theory", Cambridge Journal of Economics, V. 18 (1994): p. 362.

In short, neoclassical economists have proved (by contradiction, in some sense) that neoclassical microeconomics is not even wrong and that methodological individualism has failed.

Wynne Godley On Front Business Page Of New York Times

The New York Times, even outside of their editorial pages, seems to think their readership should know about the non-mainstream economists I generally like:

• 11 September 2013 profile of Wynne Godley.
• 18 July 2013 article on Steve Keen and how his work builds on Hyman Minsky.
• 5 July 2013 profile of Warren Mosler.
• 4 March 2009 article on the difficulties heterodox economists face in academia.
• 23 April 2008 profile of George Soros.
• 11 July 2007 article on heterodox economics.

I predict that this profile of Godley will get a more positive response from Post Keynesians and advocates of endogenous money than their profile of Warren Mosler did. One caveat: I think Godley was more about using his stock-flow consistent modeling to identify unsustainable trends, than to quantitatively predict the course of, say, Gross Domestic Product (GDP) over the next n quarters. (He also accepted the conclusions of the Cambridge Capital Controversy.)

Update: I should have noticed that the Jonathan Schlefer is the author of the article on Godley. L. Randall Wray comments.

Elsewhere

• Steve Denning, a writer for Forbes, describes Milton Friedman as being the source of "The world's dumbest idea". (I have written on Milton Friedman's confusion. incoherence, and lack of integrity, as well as Michael Jensen's (ir)responibility. See also Unlearning Economics.)
• Mike Konczal on Philip Mirowski's new book.
• Henry Scowcroft on the need for communicating economics to the public.
• Michael Lind on supposedly "Econ 101". Noah Smith complains about the public impression of what economists teach.
• Robert Neild on a 1981 anti-monetarism petition. I am especially amused about him losing his cool in a debate with Milton Friedman.
• Mark van Vugt and Michael Price, two psychologists, I gess, comment on Homo Economics. They link to a website which has David Sloan Wilson as editor in chief.
• Floyd Norris, in the New York Times, explains that Steve Keen foresaw the global financial crisis better than Ben Bernanke did.