Doesnt the fact that cash reserves go down in recessions contradict Keynesianism? It seems cash reserve is procyclical. Also anyone have the financial cash reserve data?
You very often see Krugman an other economists imply that corporations holding cash is a bad thing or affects demand. 

http://krugman.blogs.nytimes.com/2011/07/02/cash-is-not-the-problem/?_r=0

However, you have to remember that Krugman is just stating his personal opinion. He does sometimes say things that contradict academic Keynesianism. 

The fact that corporations hoard less cash during recessions doesn't necessarily contradict Keynesianism or New Keynesianism, but it does require these theories to explain why corporations behave this way (which the theorists have not attempted).