I would reject the distinction between a Keynesian moment and a behavioral moment.
I am not a monetarist, and I am not a Keynesian. On certain points I agree with each.
I'm happy to say I am a Harrison-Kreps-Keynesian.
Disciples of Keynes, who focus on aggregate demand, view any increase in household wealth as raising employment because they say it adds to consumer demand.
Economics has paid a terrible price for its dalliances with the Keynesian and neoclassical theories.
I'm not a macroeconomics person.
At the time, my personal research objectives were to provide Keynesian economics with more rigorous foundations and to tighten and elaborate the logic of macroeconomic and monetary theory.
I work with the macro economy, which involves the major variables that measure the health of the whole economy, such as total consumption, investment, income, employment, and inflation.
The income effects in an economy always sum to zero.
Macroeconomics is the analysis of the economy as a whole, an examination of overall supply and demand. At the broadest level, macroeconomists want to understand why some countries grow faster than others and which government policies can help growth.
In New Classical theory, periods of declining employment - business cycle downturns - may be caused by an unexpected decline in aggregate demand, which leaves workers mistakenly holding out for nominal wages that exceed the new market-clearing level.
The fallacy of the neoclassicals is their tenet that total employment, though hit by shocks, can be said always to be heading back to some normal level.
I don't think money itself has any causal relationship to nominal GNP. The dominating causal force is interest rates.
For decades, my research was driven by outstanding problems in macroeconomics: mainly growth theory and employment theory.
I attempted to see famines as broad "economic" problems (concentrating on how people can buy food, or otherwise get entitled to it), rather than in terms of the grossly undifferentiated picture of aggregate food supply for the economy as a whole.
