A Contrast: Understanding Pricing in Macrostatic DSGE and in Macrodynamic FMD

.I.  Introduction: Contrasting Diagrams and What They Represent

We contrast an assumption and description with an explanation and interpretation.  We contrast the Dynamic Stochastic General Equilibrium (DSGE) assumption and description of pricing as exogenously given and acceptable as a lead item in analysis of economic problems with Functional Macroeconomic Dynamics’ (FMD’s) explanation and interpretation of pricing in the light of the significant functional pretio-quantital flows, which explain the dynamic economic process. (Continue reading)

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