The editor of this book of collected essays claims that Post Autistic economics is well on its way to challenging the neoclassical mainstream that currently dominates the economics profession.This mainstream is based on the Bayesian Subjective expected utility theory that argues that all probabilities are additive and linear.Unfortunately,the post Autistic movement is no match for neoclassical economics.The first problem is that post autistic economics appears to be just another name for the Post Keynesian school that rejected Keynes's General Theory analysis contained in chapters 20 and 21 of the General Theory,as well as rejecting Keynes's interval estimate approach to probability and his c coefficient approach to decision making in chapters 6,15,17,20,22, and 26 of the A Treatise on Probability (1921).The Post Keynesian claim is that the only chapter in the GT that contains Keynes's analysis of effective demand is chapter 3 and that this chapter is an intellectual mess. The Post Autistic movement is actually built on a foundation that is an amalgam of the faulty analyses of Joan Robinson,Richard Kahn, Dennis Robertson,Sydney Weintraub, Paul Davidson,G Harcourt,D Vickers, and G L S Shackle.This school falsely claims that Keynes never provided any clear and convincing model or analysis in the GT. Contrary to the Post Keynesians,it's all there in chapters 20 and 21 of the GT.However,these chapters are not read by Post Keynesians or members of the post autistic movement due to the extreme mathematical illiteracy,innumeracy,and ineptness and confusion of Post Keynesian (post Autistic)economists.Keynes handed off the football to the Joan Robinson,Austin Robinson,Richard Kahn,and Nicholas Kaldor with a first down at the one yard line of the neoclassical school.THe result was fumble after fumble after fumble .Now the situation is reversed.The neoclassicals have a first down at the post Keynesians (post autistic) one yard line.It will only be a short time before the Post Keynesians disintegrate.This is why they plan to continue their losing battle under the name post autistic economics.
Keynes gave his nominal followers the following huge advantage on pp.304-306 of the GT in 1936-He generalized the neoclassical equation of exchange to include decision making under uncertainty and ignorance as well as risk.The neoclassical results only hold if Keynes's weight of the evidence index,w,defined on the unit interval [0,1],equals 1.The elasticities e and ed subscript on pp.305-306 equal 1 if w=1 .This means that there is no uncertainty and/or ignorance.There is only risk.Velocity will now be a constant,strictly proportional to gnp,stable ,or predictable because there will only be a transactions demand for money.Liquidity preference will equal 0 and there will be no asset demand for money so that M2 will equal 0 in the M=M1+M2 equation discussed on pp.208-209 of Section 4 of chapter 15 ,which is the necessary required prerequisite to understanding chapter 21.Then M= M1.Only voluntary unemployment will result.On the other hand ,if w < 1, then e <1,and ed subscript < 1.Decision making under uncertainty and ignorance,especially impacting the extremely important long lived durable capital investment sector of the economy ,will result in a situation where labor,as a whole, will be unable to cut its money wage.Involuntary unemployment results as liquidity preference increases so that M2>0.This basic analysis is nowhere to be found in this book or in any of the other writings of any of the other essay writers in this book.Keynes provided a general theory of decision making in the GT.It is an application of his c coefficient model which he presented on p.315 of the TP and analyzed carefully in footnote 2 of p.315.c=p2w/(1+q)(1+w).Define A as an outcome.The goal is to maximize cA.It has been proven by Brady that a modified c coefficient model, where w=1 ,would still result in involuntary unempoyment since neoclassical theory is based upon BOTH linearity and additivity.One then obtains c=p/(1+q).Additivity is satisfied but not linearity.Neoclassical theory is based on the assumption that all probability preferences are linear and additive.Keynes proved that the general case is that probabilities are non linear and non additive.Keynes's analysis takes place in chapters 15,17,20, 22, 26,and 29 of the TP.Unfortunately,Shackle and Davidson completely rejected this due to their own very poor scholarship and mathematical training.They have passed down their errors for a new generation of Post Keynesians to absorb .
I can't recommend this book to anyone.Students will come away completely bewildered ,baffled,confused,and dazed.