Keynes' views on expectations, rationality and business decision making have often been misunderstood, most recently by George Akerlof and Robert Shiller in their book, "Animal Spirits". In this paper I discuss the role of "psychology" in Keynes' economic writings, with particular reference to...

In this comment on Quiggin (2009), I identify an additional six doctrines that have been refuted by the global financial crisis. These are: rational expectations; Ricardian equivalence; only interest rates matter (for monetary policy); downward flexibility in wages and prices is always a good...