The theory of rational expectations has no foundation in any extant theory of probability. None of the five existing theories of probability (Logical, Subjective, Classical, Propensity, and Limiting (relative) Frequency) lend any support at all to the Muthian conjecture that the subjective...

O Lange's failure to read chapters 20 and 21 of the General Theory accounts for his failure to use Keynes already worked out simplifications for the case where the Aggregate Supply Curve was infinitely elastic or had a horizontal segment. Chapter 3 of the General Theory only presents an outline...

J. Muth published a paper in 1961 in Econometrica that was incoherent and inconsistent because it was based on a hybrid amalgamation of directly conflicting Subjective and Objective theories of probability. Muth's hybrid amalgamation did not exist before 1961, in 1961, or after 1961. Muth jumps...

Keynes provided an overwhelming argument in his letter of August 27th, 1935 to Harrod that convinced Harrod twice to acknowledge that Keynes had made a “radical reconstruction” of the theory of the rate of interest. Special significance can be given to Keynes's three point post script in...

In his August 30th, 1935 letter to Keynes, Harrod not once, but twice, conceded that Keynes had radically reconstituted the classical and neoclassical theory of the rate of interest by pointing out that the standard theory was one equation short. However, by adding the missing Liquidity...

Extreme mathematical illiteracy played a basic, fundamental role in the assessments made by Joan Robinson, Ralph Hawtrey and Dennis Robertson of Keynes's Theory of Liquidity Preference, which Harrod described in an August 30 1935, letter to Keynes as a major reconstruction of interest rate...