Category Archives: Bernard Lonergan

The Einsteinian Context: Curvature and Relativity

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Albert Einstein, Steven Weinberg, Lillian Lieber, Douglas Giancoli, Raymond A. Serway, Bernard Lonergan, Philip McShane, Peter Burley,

.1. Introductory

Graduate students seeking a thesis topic may expand this treatment of the Einsteinian context of Functional Macroeconomic Dynamics.  It should be of special interest to those having a strong background in theoretical physics and, thus, able to appreciate the analogies from physics.  “Similars are similarly understood.” (CWL 3, 288/313)

Philip McShane alerted us to the resemblances between Lonergan’s context of general macroeconomic dynamics and Einstein’s context of general relativity.

(Part Two entitled Fragments) belongs almost entirely in what I call the Einsteinian context of Part Three, in contrast to the Newtonian achievement of Part One; … [CWL 21, Index, 325]

A new science has emerged.  Lonergan has elevated conventional macrostatics to a macrodynamics explaining economic accelerations. (Continue reading)

A Scientific Normative Alternative Between Laissez-Faire Running Amok and Totalitarianism Featuring Controlled Media, Firm Indoctrination, the Threat of Labor Camps, and Servile Degeneracy

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Frederick Lawrence (Boston College) is a co-editor of Bernard Lonergan’s Macroeconomic Dynamics: An Essay in Circulation Analysis. (CWL 15)   Fred penned the Editors’ Introduction to that book. (Click here.) He also wrote an article entitled “Between Capitalism and Marxism: Introducing Lonergan’s Economics”.  Perspicacious economists in academe, government, and banking will benefit greatly from an immediate reading.  For access to the article now, please use the following simple path:

In your main search bar, enter JSTOR and press your Enter key.

Then, in the upper left, Click into the box “Search journals, books, images, and primary sources“.

Then, type into that box 40338243 and press your Enter key. That’ll do it. Continue reading →

Two Summaries in Functional Macroeconomic Dynamics

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.I.   Summary of the Analysis:  Heuristic, Observations, and Discoveries

.II.  Summary of the Argument (verbatim from CWL 15, 5-6)

.III. Supplement to the Summaries

(Continue Reading)

Explanation By Gross Domestic Functional Flows To Supplement Description By Gross Domestic Product

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A distinction has been drawn between description and explanation.  Description deals with things as related to us.  Explanation deals with the same things as related among themselves.  The two are not totally independent, for they deal with the same things and, as we have seen, description supplies, as it were, the tweezers by which we hold things while explanations are being discovered or verified, applied or revised. … [CWL 3, 291/316]

The analysis of the overall dynamic functioning, which we call in nominal terms the economic process, must seek the explanation of the process.   It must seek the objective immanent intelligibility among the interdependent, dynamic “functionings” which altogether constitute the process.  The functionings are rates of so much or so many every so often, and, thus, they are velocities.  And the scientific analysis must be in terms of abstract, implicitly-defined, explanatory conjugates rather than in terms of the descriptive accountants’ unities of merely legal or proprietary entities called “firms.” (Continue reading)

Abstraction in Macroeconomics; Classical and Statistical Laws

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Abstraction is enriching.  The relation of things to our senses must be transcended by abstraction; abstraction yields explanatory concepts implicitly defined by their functional relations to one another.

The commonsense accounting relations constituting historical Gross Domestic Product must be supplemented by the abstract explanatory formulation of Current Gross Domestic Functional Flows.  All participants must have the scientific guidance of a normative theory in order to properly adapt their personal conduct to the principles and laws of the objective process. (Continue reading)

A Bernard Lonergan Sampler

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I hope that this Sampler will a) demonstrate the breadth and depth of the knowledge that Lonergan brought to Macroeconomic Dynamics, and b) inspire readers to compare their perspective to his in regard to science and macroeconomics.  His thinking ranged over mathematics, natural science, method, history, philosophy, theology, and art.  This sampler is arranged in groups of excerpts from particular  books of Lonergan.  Scroll down to see the arrangement.

CWL 3, Insight: A Study of Human Understanding

“The most significant book of the twentieth century,” (Philip McShane)

A distinction has been drawn between description and explanation.  Description deals with things as related to us.  Explanation deals with the same things as related among themselves.  …  description supplies, as it were, the tweezers by which we hold things while explanations are being discovered or verified, applied or revised. … [CWL 3, 291/316]

The concrete intelligibility of Space is that it grounds the possibility of those simultaneous multiplicities named situations.  The concrete intelligibility of Time is that it grounds the possibility of successive realizations in accord with the probabilities.  In other words, concrete extensions and concrete durations are the field or matter or potency in which emergent probability is the immanent form of intelligibility. (CWL 3, 172) Continue reading →

Modern Monetary Theory Is Backward; It Creates “Illegal” Superposed Circuits

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Preliminary note: In this section we are addressing the proper understanding and management of the economic process in normal, non-pandemic times.  We affirm that the recent pandemic called for extraordinary measures.

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Unwittingly, first out of ignorance, more recently as necessitated by a pandemic, and most recently out of continuing ignorance, some nations, including the U.S., have wandered into the ultimate menace to the financial system, the spending without constraint blessed and recommended by unscientific. so-called Modern Monetary Theory. (Click here and here) The systematic result of MMT’s unconstrained printing of money, unjustified by corresponding, concomitant production of goods and services, is rampant inflation in prices for a) goods and services and/or b) financial assets.  (Continue reading)

Why And How The Basic Expansion Fails To Be Implemented

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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 Most Significant Book of the Twentieth Century”

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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 →