The Federal Government – including its Treasury Department – and the Federal Reserve Bank are We The People. Whether blundering or competent, they constitute We acting upon and among ourselves by their agency. They are not purely independent third parties.
The general form of so-called stagflation is more money chasing fewer goods in the basic circuit and a dearth of investment in the surplus circuit to keep pace with the strong basic demand. (Click here)
Lonergan gave one theoretical example of stagflation – without calling it that – wherein the condition of equilibrium between the circuits of the process is violated: Continue reading
A quote from [McShane, 2017, Preface xii]: “I have brought you face to face with the first page of the most significant book of the twentieth century.* … You are on the edge of the invention of the permanent science of econo-dynamics. What is your next move? Obviously, if you are an economist, you get moving towards a Nobel Prize.” Continue reading
The economic process always is “the current process” constituted by current interdependent velocitous flows of so-much or so-many every so often.
The productive process is, then, the (current) aggregate of activities proceeding from the potentialities of nature and terminating in a standard of living. Always it is the current process, and so it is distinguished both from the natural resources, which it presupposes, and from the durable effects of past production. [CWL 15, 20]
The goal of scientific analysis is explanation of the objective economic process, i.e. to discover the abstract immanent intelligibility which explains any particular configuration of flows of products and money in any instance. Such immanent intelligibility would be always relevant and universally valid. (Continue reading)
This weekend’s Bloomberg Wall Street Week features Larry Summers of Harvard and Bob Prince of Bridgewater Associates. It is worth listening to the cogent arguments of both re a) the adequacy of the current money supply and present liquidity, b) the dynamics of fiscal borrowing and the Fed’s accommodative printing of money, and c) the intrinsically inflationary nature of current fiscal and monetary operations. Both do a good job. And, as usual, David Westin is a good moderator asking good questions. Kudos and thanks to all three.
The Wall Street Journal of 10/6/2021 featured Paul H. Rubin’s article, “The Woke Left’s Primitive Economics”. Rubin makes several valid points in a) criticizing The Woke’s and the Marxist’s simple-minded, psycho-political, self-damaging, hate-and-envy macroeconomics, and b) recognizing that new and better human and material capital benefit the entire society. We wish Rubin had explicitly and clearly a) legitimized by nuanced theory the practical balance of taxation and spending for responsible waste-free activities, which only we, in our governmental form as We-The-People, can perform, and b) stated specifically that the level of taxation and the incidence of stratified taxation depend upon the requirements of the current phase of an economic expansion – Is it an initial non-expanding static economy, a proportionate expansion, a surplus expansion, a basic expansion, or a higher non-expanding static economy? Continue reading
On Friday, October 8, N. Gregory Mankiw’s Blog featured Nick Romeo’s interesting article entitled “Is It Time For a New Economics Curriculum?” Greg provided a quote from Romeo’s paragraph re Jonathan Gruber’s take on CORE.
Jonathan Gruber, who teaches introductory economics at M.I.T., felt that CORE might introduce too much complexity for a foundational course. He worried that so much emphasis on the ethical and political dimensions of economics might make the subject feel like a different discipline altogether. “The question is, do you want the students to feel like they’re coming out of, you know, to be blunt, a sociology class or an economics class?” Gruber said.
This website focuses on the technical aspects of Lonergan’s macroeconomic dynamics. However, we have also pointed out that the science of economics must accept its rightful place within the broader culture consisting of technology, economics, and politics. And this culture itself stands within a hierarchy of values. Further, we have emphasized the need to achieve The Good of Order. (Also see CWL 12, 496-7)
On the hundredth anniversary of Pope Leo XIII’s Encyclical, Rerum novarum, Pope John Paul II issued the Encyclical, Centesimus Annus, treating The Good of Order, the dignity of humans, the dignity of work, the right to private property, the right to freedom, the evils of Marxist totalitarianism, and the foundation of society in truth..
John Paul II (1991), Centesimus annus, (Encyclical Letter on the hundredth anniversary of Rerum novarum), Vatican
Centesimus Annus should be read by all economists who seek to be open-minded thinkers having broad perspectives, a hierarchy of values, and thus an understanding of the difference between the concepts of liberty and totalitarianism, morality and immorality, right and wrong. (Continue reading)
One Week Bootcamp
Restricted to persons with solid backgrounds in mathematics and the natural sciences
How’s it goin’ ?
How’s she cuttin’ ?
How’s she cuttin’? This phrase comes from farmers asking about the conditions for hay or crop cutting during the harvest season and has since been adopted across Ireland to be a way to ask how you are. (Google)
How’s the new money circulatin’ ? Continue reading