Functional Macroeconomic Dynamics is a set of equations which explain the current, purely dynamic, economic process. FMD is a field theory, a set of pure relations representing the immanent intelligibility of the interdependent functional velocities of the process among themselves.
In the pages below we demonstrate the inner logic of the pure cycle of expansion – in detail on the left, the instantaneous aspects of the velocities and accelerations of a pure cycle of expansion, and, in line graphs on the right, the rates and quantities of the accumulations in the pure cycle of expansion. Note at the end that the table and graphs can be downloaded in larger, more readable forms.
Newton conceived of his forces as efficient causes, and the modern mechanics drops the notion of force; it gets along perfectly well without it. It thinks in terms of a field theory, the set of relationships between n objects. The field theory is a set of intelligible relations linking what is implicitly defined by the relations themselves; it is a set of relational forms. The form of any element is known through its relations to all other elements. [CWL 10, 154]
… as to the notion of cause, macroeconomists mistakenly conceive of subjective preferences as formal causes. Functional Macroeconomic Dynamics drops the notion of subjective preferences; it gets along perfectly well without it. It thinks in terms of a field theory, the set of relationships between n interdependent, implicitly defined functional activities. The field theory of FMD is a set of intelligible relations linking what is implicitly defined by the relations themselves; it is a set of relational forms. The form of any functioning is known through its relations to all other functionings. …. Macroeconomic field theory is a matter of the immanent intelligibility of the objective phenomena of the economic process. [See CWL 10, 154]
Our aim is to prescind from human psychology (so) that, in the first place, we may define the objective situation with which man has to deal, and, in the second place, define the psychological attitude that has to be adopted if man is to deal successfully with economic problems. Thus something of a Copernican revolution is attempted: instead of taking man as he is or as he may be thought to be and from that deducing what economic phenomena are going to be, we take the exchange process in its greatest generality and attempt to deduce the human adaptations necessary for survival. [CWL 21, 42- 43]