The fallacy of the ”Keynesians” is their premise that all slumps, all of the time, are entirely the result of ”co-ordination problems” – mis-expectations causing a deficiency of demand. Having modelled the effects of expectations decades ago, I know they have consequences. I agree that companies appeared to underestimate the cutbacks and price cuts of competitors on the way down. That excessive optimism signalled deficient demand for goods and labour. So any stimulus then may have had a Keynesian effect. By now, though, such optimism has surely been wrung out of the system. To pump up consumer or government demand would force interest rates up and asset prices down, possibly by enough to destroy more jobs than are created.
Förvisso ger han även neoklassikerna en smäll. Han rekommenderar keynesianer att läsa mer Keynes och neoklassiker att läsa mer Hayek.* Han är dessutom pessimist och tror inte på en snar ekonomisk återhämtning.