We frequently make the claim that Functional Macroeconomic Dynamics sublates all other macroeconomic theories by reaching an adequate level of abstraction, or a deeper unity, or a more profound point of view, or a purely relational, fully explanatory, scientific macroeconomics. This deeper intelligibility fully explains the economic process and eliminates at a stroke much of what is contained in the current popular 700-page textbooks.
Ragnar Frisch was a Norwegian economist and the co-recipient of the first Nobel Memorial Prize in Economic Sciences in 1969.
Frisch’s failure to develop a significant theory typifies the failure of economists who search for a dynamic heuristic. As well as a fundamental disorientation of approach there is also a tendency to shift to an inadequate level of abstractionwith a premature introduction of boundary conditions in a determinate set of differential and difference equations. [McShane, 1980, 114] continue reading