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Post Keynesian Economics: Debt, Distribution, and the MacRo Economy

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The potential reader of this book should simply save his money because Palley bases his anaysis on the massive misinterpretations made by Paul Davidson,who based his interpretation on S.Weintraub's interpretation of Dennis Robertson,a self admitted mathematical illiterate,who claimed that Keynes's theory had to be contained in Keynes's discussions on pp.24-30 of the GT,although Keynes himself told Robertson quite bluntly that his theory was not presented technically in chapter 3 of the GT.Palley gives the standard claim that Keynes's theory of effective demand is in chapter 3 of the GT,but that,since Keynes gave no mathematically correct foundation for his theory of effective demand,one has to read between the lines to figure out what Keynes must have really(really) meant if he was rational.P immediately slides down the slippery slope created by Robertson in articles published in the Economic Journal in England in the period 1954-1956 with the help of an error filled mathematical appendix provided by Harry Johnson.P misdefines Z as equaling pO,where p is the price level and O is real output.This is mathematically incorrect since integration of Keynes's footnote on pp.55-56 of the GT and of the derivatives given by Keynes on pp.283-285 prove mathematically that Z= wN+P,where w is the money wage,N is the amount of aggregate employment,and P is expected economic profit.All of Palley's results suffer from this mathematical error on his part,which was passed down to him by P.Davidson.