VOL 69 NO. 2 AN APPRAISAL OF THE NON-MARKET-CLEARING PARADIGM deficit, produced by higher expenditures or stickiness, the cyclical behavior of real wages reduced taxes with the money stock held is indeterminate fixed, imply increases in output-which are I will not attempt at this time to present a likely to be multiplicative-and increases in detailed appraisal of the state of current interest rates. These effects persist over a empirical evidence-however, I think that the substantial period. Prices rise at a faster rate major doubts about Keynesian, non-market than otherwise, but the initial price response clearing-type analysis that are prevalent is weak. The nature of government expendi- today are primarily a reflection of perceive tures and expectations about future taxes, empirical inadequacies of the theory, espe prices, etc, are not stressed in simple models cially in an inflationary environment. I expect of this type. 3)Real wages move countercycli- that the final verdict on the usefulness of cally in models that assume only wage sticki- Keynesian economics will also come primarily ness. In models that also assume some price from empirical analysis