The rise and fall of Keynesianism

Quiggin and Farrell are going to use network theory. Reading it now, always fun to read economists discuss flow in finite network without an ergodic expectation function, right?
Here is their first brush with relating flow to connectivity.

Finally, the greater the variance in the number of links associated with
nodes, the easier it will be for ideas to spread across the network.

It is a bit more subtle, the links and the flow tend to match, the definition of information actually. Consensus is reached when the links form a spanning tree. The production process in the spanning tree is one of the infamous -iLog(i) i a probability of transmission, -Log(i) the quant of information at that rate. But I digress, lets go on.

Furthermore, the more clustered a given social network is, the more important
will be role of `stars' with high degree and cross cutting ties in spreading contagion across
clusters.

Yes, starting to get it. Think of clustered nodes as the wholesale complex, less clustered outliers the retail complex. It is a production system.


Otherwise, the network of ideas theory moves along in the paper and worth the read. The coagulation of consenus basically followed the crash, overshoot and repricing. The real Keynesian moment comes after the overshoot when prices start to stabilize. We think, good god government could have bought some damn cheap stuff!