July 17, 2013

Keynes, Hayek, Kant

Comment on 'Rethinking Keynes’ non-Euclidian theory of the economy'


In the glorious days of economics the great thinker Hayek was quipped by the great thinker Keynes: “... a remorseless logician can end up in Bedlam.” (Keynes, quoted in Moggridge 1976, p. 36)

Economists in those days already were Confused Confusers (2013). This is not a lament but a statement of fact. Neither Keynes nor Hayek had a clear idea of the foundational concepts income and profit. That's easy to prove.

We perfectly agree on Kant’s dictum: “Theory without empirical content is hollow. Empirical observations without [good & falsifiable] theory are directionless.”

Theory, though, starts with axioms, as Kant would have told you also.

Egmont Kakarot-Handtke

Kakarot-Handtke, E. (2013). Confused Confusers: How to Stop Thinking Like an Economist and Start Thinking Like a Scientist. SSRN Working Paper Series, 2207598: 1–16. URL
Moggridge, D. E. (1976). Keynes. London, Basingstoke: Macmillan.