Category Archives: A New Paradigm

Insight Into The “Baseball Diamond”: Discovery For Implementation

Thus, if we want to have a comprehensive grasp of everything in a unified whole, we shall have to construct a diagram in which are symbolically represented all the various elements along with all the connections between them. [McShane 2014, 11 (quoting CWL 7, 151)]

We wish here to suggest the insights the reader should have to fully appreciate all that is contained in the Diagram of Rates of Flow. (Continue reading).

A Burley Sampler

In our Thanks section we have emphasized our debt to Professor Peter Burley.  With a PhD in physics (Adelaide, 1965) and a PhD in Economics (Princeton, 1968) he was well qualified to understand the revolutionary nature of Lonergan’s Macroeconomic Field Theory. (Continue reading)

A Normative Dynamic Structure, Despite Maladaptive Errors by “Infielders”

Functional Macroeconomic Dynamics has a definite, normative, dynamic structure. Evidently, there is a high degree of indeterminacy to events within such a dynamic structure.  All one can say is the game can go all awry. But despite this almost baffling indeterminacy, it remains that there is a definite dynamic structure. [CWL 21, 211-12]

The velocities of correlated, interdependent payments must keep pace and be in balance. Payments of dummy money move at velocities in circuits; e.g. O = I = E = R (CWL 15, 54) and O’ + O” = I’ + I” = E’ + E” = R’ + R” (CWL 15, 54)  The arrows in the Diagram of Rates of Flow  represent channels containing analytically-distinguished, interdependent, functional velocities.  These dynamic functionings are defined by the functional relations in which they stand with one another.

The intelligibility of the concrete process consists of two components: an abstract primary relativity expressing the normative systematic structure, and a secondary  component of concrete determinations from the non-systematic manifold.  There is a normativity to the dynamic structure.  An analogy from baseball may help to make the point regarding interdependence and keeping pace.

 

A large and positive crossover difference uncompensated by action from the pitcher’s box will result sooner or later in depriving the groups at second and third bases of all their balls, or if the crossover difference is large and negative, it will result in depriving the groups at home and first of all their balls.  Continue reading

Lilley and Rogoff Recommending Negative Interest Rates

We are commenting with respect to Andrew Lilley and Kenneth Rogoff’s “conference draft” discussing the advisability of a FRB policy of negative interest rates:

 Lilley, Andrew and Kenneth Rogoff, April 24, 2019: “The Case for Implementing Effective Negative Interest Rate Policy” (Conference draft for presentation at Strategies For Monetary Policy: A Policy Conference, the Hoover Institution, Stanford University, May 4, 2019, 9:15 am PST) [Lilley and Rogoff, 2019]     (Continue reading)

A McShane Sampler Relevant to Functional Macroeconomic Dynamics

Philip McShane had a strong background in mathematics and theoretical physics; thus he was able to understand the scientific significance of Bernard Lonergan’s macroeconomic field theory in an Einsteinian context.

First we display, in brief, key excerpts, many of which contain analogies from physics and chemistry, relevant to the science of Functional Macroeconomic Dynamics; then we show the same excerpts more fully within lengthier quotes. Continue reading

Theoretical Breakthroughs of Euclid, Newton, Hilbert, Einstein, and Lonergan

To help the reader gain an appreciation of Lonergan’s achievement of Modern Macroeconomic Field Theory we will, in each section, print leading excerpts, then highlight the key concepts of those excerpts. We will comment on the historically-significant advances in geometry of Euclid and Hilbert, in physics of Newton and Einstein, and in macroeconomics of Lonergan.

  • Euclid’s great achievement was his rigorous deduction of geometry.
  • Hilbert’s great achievement was his employment of implicit definition to reorder Euclid’s geometry.
  • Newton’s two great achievements were unifying the isolated insights of Galileo and Kepler into a unified system of mechanics and his invention of the calculus.
  • One of the great achievements of Einstein was the invention of the field theories of Special Relativity, General Relativity, and Gravitation.
  • One of Lonergan’s several great achievements was his systematization of macroeconomic phenomena in his Modern Macroeconomic Field Theory. He combined the technique of implicit definition introduced by Hilbert and the concept of a field theory developed by Faraday and Einstein; and he developed an explanatory macroeconomics, which is general, invariant, and relevant in any instance. (Continue reading)

Understanding All in a Unified Whole

“if we want a comprehensive grasp of everything in a unified whole, we shall have to construct a diagram in which are symbolically represented all the various elements of the question along with all the connections between them.” [McShane, 201644]

Continue reading

“The Most Significant Book of the Twentieth Century”

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.* There the man suggests: 1) that a key move is to pause over little things, 2) that Archimedes invented the permanent science of hydrostatics by focusing on a crown-weighing problem. 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.”

*The book is Bernard Lonergan’s Insight, A Study of Human Understanding, 1957, 1992 CWL 3, University of Toronto Press.

The Fundamental Quantum of Political Economy is Denoted by the Subscript “k”

 

Taking a cue from Descartes, Lonergan advised that we attend to the simple things that anyone can understand.

Again and again, in his regulae ad directionem ingenii, (Descartes) reverts to this theme.  Intellectual mastery of mathematics, of departments of science, of philosophy, is the fruit of a slow and steady accumulation of little insights.  Great problems are solved by being broken down into little problems.  The strokes of genius are but the outcome of a continuous habit of inquiry that grasps clearly and distinctly all that is involved in the simple things that anyone can understand.  (CWL 3, 3/27) Continue reading

Lonergan’s Laws of Economic Motion

Newton’s Laws of Motion are laws of efficient cause.  In brief:

  • A body at rest or in uniform motion remains at rest or in uniform motion unless acted upon by an(external, efficient-causal) force
  • F = ma; force equals mass times acceleration
  • When one object exerts a force on a second object, the second exerts an equal and oppositely directed force of equal magnitude on the first. (Continue reading)