The real economic problem is much worse and much more insidious than simply DSGE and its rational expectations etc. etc. fallacious assumptions. It’s the long term 5000 year old assumption that private or publicly controlled finance and its equally long paradigm of Debt Only as the sole form and vehicle for the distribution of money. It is like breathing. We/re normally unconscious of it until like 2008 we can’t breathe/finance all of a sudden and it comes home to us in a panic how important breathing/a more than adequate amount of money is continuously available for exchange.
Keen nailed it with his de-bunking of DSGE and Hudson is spot on in his identifying finance as a huge parasite on the rest of the actually productive economy…IT’S JUST THAT THEY DIDN’T KNOW HOW TO PROCEED IN TRANSCENDING BOTH CAPITALISM AND SOCIALISM WITH ABUNDANTLY DIRECT AND RECIPROCAL MONETARY DISTRIBUTISM AT THE POINT OF RETAIL SALE….and of course a relative handful of further regulations and a structural change or two..
How many times do we have to beat the dead steed of DSGE etc. and keep droning on with our particular (correct) social science insights?
“It’s the monetary paradigm, stupid.”, the insight of the policy power point of retail sale with a 50% Discount/Rebate monetary policy there and the ultimate integrative philosophical concept of grace as in monetary gifting leading and guiding the consequently transformed economy.