Author Archives: Functional Macroeconomic Dynamics

WSJ’s William A Galston re Inflation and the Forecasts of Paul Krugman, Larry Summers, Jason Furman, and Charles Goodhart

The Wall Street Journal of 4/6/2022 featured an article by William A. Galston entitled “How Will Inflation End?” W. Galston noted that Larry Summers has had a reliable sense of recent excesses and their inexorable consequences.  Summers has been right in emphasizing for a long time the inequitable consequences of the intrinsically-inflationary flooding of the money supply by the executive and legislative branches through the agency of the U.S. Treasury and the accomodative Federal Reserve Bank. Continue reading

The “Truth” or “Verification” of Macroeconomic Field Theory

Part I –Introductory

.I.A  Outline of the Analytic Process

Part II – List of Notions Underlying and Constituting FMD’s Explanatory Hypothesis 

Part III – Substantiation of Related Notions 

.III.A Arguments Relevant to the Notions of Truth and Verification of FMD

.III.B. List of Important Ideas and Arguments to be Substantiated

.III.C Substantiation of Important Ideas and Arguments 

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An Einsteinian Relativistic Context: Space and Time Become Space-Time; Price and Quantity become Price-Quantity; An Abstract Set of Invariant Explanatory Relations


  • .I. Relations and Relativity in General
  • .II. Einstein’s Special Relativity and General Relativity
  • .III Lonergan’s Double-Circuited, Pretio-Quantital Relativity Theory
  • .IV. The Basic Price Spread; The Co-ordinated Relativity of Three Major Pretio-Quantital Flows and the Co-operative Relations Within Each Major Flow
  • .V. The Macroeconomic Field Theory Equations
  • .VI. Concerning Verification
  • .VII. Miscellaneous Selections
  • .VIII. Conclusion

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The Road Up is The Road Down; The Mechanism of Rising or Falling  Prices

“The road up and the road down is one and the same. (Heraclitus)
ὁδὸς ἄνω κάτω μία καὶ ὡυτή

Archaeologists and scholars have not found the context of this isolated fragment of Heraclitus.  What “road” was he referring to, and was he was speaking literally or figuratively? I simply like the statement as an introduction to the ups and downs of distinct price-quantity flows, whether in a pure cycle of expansion or in a distorted cycle of boom and corrective slump. Continue reading

Macroeconomic Field Theory’s Higher Laws Stand Above and Are Indifferent to the Endless Complexity Within the Exchange Solution

Part I – The Exchange Solution’s Complexity and Change:

The exchange solution stands above and is indifferent to endless complexity and endless change; it stands on a level above all particular products and all particular modes of production.

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Why And How The Basic Expansion Fails To Be Implemented

In the ideal pure cycle, the long-term expansion proceeds from a static phase through a proportionate-expansion phase , then through a surplus-expansion phase, then through a basic-expansion phase, and finally into a higher static phase of greater abundance.

At (the beginning of a basic expansion) an economic system is confronted with an intrinsic test. Its success will be established if it can complete the major basic expansion and – without mishap, without inflation, without unemployment, without a break in confidence –  make its way serenely into the haven of the stationary state.  I mean of course, not the stationary state of mere backwardness, not the stationary state of stagnation when a disastrous crash follows on an earlier apparent triumph, but the stationary state that preserves all the gains of the preceding major expansions.  It is (then) content to produce their gains at a constant rate.  Its duration may be short or long, for in each case it must wait until such time as further new developments are grasped by human intelligence and eventually become practically conceived possibilities. [CWL 15, 80] (Continue reading)

The Correlation of the Need for Money With the Magnitudes and Frequencies of Turnovers

A first task thereafter will be to correlate the need for more or less money in the productive process with the magnitudes and frequencies of their turnovers.  On that basis it will be possible to distinguish stable and unstable combinations and sequences of rates in the three main areas and so gain some insight into the long-standing recurrence of crises in the modern expanding economy. [CWL 15, 53-4 and 177] Continue reading

Frank Wilczek’s “We’re All Still Living in Euclid’s World”

The Weekend Wall Street Journal,  2/5-6/2022, featured Frank Wilczek’s (MIT) column entitled “We’re All Still Living in Euclid’s World.”  The article prompts further thinking about how space, space-time, and generalized coordinates underly Bernard Lonergan’s pretio-quantital Functional Macroeconomic Dynamics, AKA Macroeconomic Field Theory. (continue reading)

Bernard Lonergan, Marx, and Liberty – Relevant to Issues of Today

In this section Lonergan demonstrates that Marx’s economics is insufficiently abstract and is contaminated by descriptive sociological and political categories; he finds Marx’s summons to class conflict perilous to humanity because it promotes and enforces a drift away from liberty to a totalitarianism culminating in the dreadful conditions of a no-escape “frontier, clear and firm indoctrination, controlled media of information, a vigilant secret police, and the terrifying threat of labor camps,” – all in the name of a mythical macroeconomics. (Continue reading)