Not sure that @bryan_caplan has read the General Theory. Keynesian unemployment does not rely on sticky wages.
http://econlog.econlib.org/archives/2011/12/wages_must_fall.html …
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Flexible wages cannot ward off animal spirits. Here's a simple model (near end of slide deck): http://www.sfu.ca/~dandolfa/Search_and_Matching.pdf …
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There's a cottage industry of professional Keynes interpreters, so the best answer is probably just, "Keynes wasn't clear."
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Remember, Keynes (and interpreters Hicks and Hansen) did not have the tools of modern game theory. It is clear now what he meant.
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I can understand you saying, "It is clear now what Keynes should have said." But "It is clear now what Keynes MEANT"?!
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Bryan, we cannot be sure, of course. But having read GT, Patinkin, Leijonhufvud, it is clear JMK meant coordination failure.
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He was unable to formalize it & Hicks tried using rigid nominal wages, but unsuccessfully. Then game theory came along and all made sense.
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I don't know where this notion of GT as being vague and more subject to interpretation than other works came from. Perhaps b/c idea was new.
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