- More on macroeconomics, especially so-called Dynamic Stochastic General Equilibrium (DSGE) models.
- More on Keen's own dynamic systems approach, building on Minsky, to macroeconomic modeling.
- Connecting up the intellectual bankruptcy of mainstream economics to the current global macroeconomic disaster
A common mainstream response to Keen is to say that the cutting edge of mainstream researchers have transcended the issues Keen raises. At best, he is only attacking undergraduate teaching.
In the course of a decade, one might expect introductory teaching to have changed to incorporate some of this advanced research, at least if economics resembled many other academic disciplines. My sense, though, is that Keen had no need to update the sections on microeconomics, except to attempt other tactics in exposition, if he so chose. Am I correct?
Are mainstream economists more willing to teach General Equilibrium theory to undergraduates, including the proofs of the "near emptiness" of the theory? Do they teach that downward-sloping demand curves cannot be justified on the basis of individual utility maximization? Do they argue for downward-sloping demand curves on some other basis - perhaps because differences in characteristics among consumers balance out non-substitution effects in the aggregate (as in Werner Hildenband's research)? Has the absence of a chapter on game theory in Keen's book become more glaring, as it would be if David Kreps' textbook were more popular? Is the teaching of the theory of the perfectly competitive firm still vulnerable to Piero Sraffa's 1925 and 1926 papers? Is Robert Aumann's approach with a continuum of agents taught to undergraduates? Or, perhaps, teaching could become more focused on the empirical facts of behavioral economics, increasing returns to scale, markup pricing, and the structure of inter-industry flows and less focused on mistaken a priori neoclassical theory.
Mainstream economists are trained to be ignorant, including of the history of subject. This willful ignorance on history, as far as I know, has only become worse in the period between Keen's editions. Thus, if mainstream economics can ignore a criticism for about a decade, they can then relegate it to the (unstudied) history of thought. As I understand it, most of the arguments in Debunking Economics are decades old.
Will mainstream teaching in economics ever be worth taking seriously?