Comment on J.-M. Grandmont, "Keynesian Issues and Economic Theory"

Abstract

Jean-Michel Grandmont's paper is a crisp and thought-provoking presentation of some of the newest theoretical developments in what may be called Modern approaches to macroeconomics. Although some points of emphasis might have been put differently, it is easy to be in broad agreement with him that the newest ideas and models look challenging for the foundations of macroeconomic theory. I will not try to comment on his paper in a comprehensive way. Rather, I take up some points and themes which I find worth emphasizing differently. I must say at the outset that my discussion focuses on the theoretical underpinnings of Keynesian ideas. I largely leave the empirical and policy aspects aside.