Category Archives: Ben S. Bernanke

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)

Textbook Flaws and Deficiencies

The popular textbooks of Macroeconomics – by N Gregory Mankiw, Paul Krugman and Robin Wells, Olivier Blanchard, Andrew B. Abel and Ben S. Bernanke, William J. Baumol and Alan S. Blinder – suffer in common from several flaws.  Our subheadings immediately below and the pointers thereafter point out flaws and deficiencies in textbooks commonly used in higher education. Though the treatments in this section are not exhaustive, they are sufficiently provocative; they should stimulate careful scrutiny of, and skepticism regarding, many traditional and conventional tenets.  Finally, though the treatments in this section are relatively brief and often primarily referential, there is a lot of ground to cover; so, we will underline and publish as time allows.

  1. This Introduction
  2. The nature of the current, purely dynamic economic process
  3. Scientific macroeconomics explains rather than merely describes
  4. A theory of macroeconomics must be independent of human psychology and anthropology
  5. The author of a textbook must employ a scientific and dynamic heuristic
  6. Real Analysis (read more)