Category Archives: Federal Reserve

Senator Tom Cotton’s Article in The Wall Street Journal (12/2/2021)

In the Wall Street Journal of Thursday, 12/2/2021, Senator Tom Cotton had an article entitled ‘No’ on Jerome Powell at the Fed. Senator Cotton was correct regarding a) the possibility of worst-case and less-catastrophic scenarios of inflation, b) the possibility of inflation wiping out wage gains, and c) that the result of the Fed’s policies is to boost prices in both the basic consumables (point-to-point) circuit and in the Redistribution Function’s secondary stock and bond markets.

Senator Cotton, as always, is to be admired for his courage; but he and all in government and the private sector must learn the principles and laws of how the objective economic process actually works.  A lot depends on a knowledgable government acting in the best interests of the entire populace of free people. Some would say it’s a matter of the survival of human liberty.

As we’ve quoted many times, both inflation and deflation are swindles. (Click here and here and here and here) Continue reading

Larry Summers is Right on the Money and Right on the Money

On this weekend’s Bloomberg Wall Street Week, Larry Summers is right on the money and right on the money. (sic)  In the light of all we’ve said about a) the explanation of inflation, b) the ineffectiveness of the Fed’s tools and the ineptness of the Fed’s actions re money supply and interest rates, c) the distribution of income between the two circuits based on the phase of the objective process, etc, judge for yourself. Continue reading

John Greenwood and Steve H. Hanke’s “The Monetary Bathtub is Overflowing”

In their article in the 10/21/2021 Wall Street Journal,  John Greenwood and Steve H. Hanke evoked an image with which we are all familiar, water flowing in and out of a bathtub.  The simple image was to be representative of monetary flows.  The image attracted attention, which was a good thing; however, Macroeconomic Field Theory finds it more instructive to put forth a more adequate representative image of flows. Continue reading

Lonergan’s “Macroeconomic Field Theory” (MFT), AKA “Functional Macroeconomic Dynamics” (FMD)

  • Functional Macroeconomic Dynamics seeks not merely to “view” and describe the economic process; rather it seeks to understand in order to explain and properly manage the economic process. (Continue reading)

Alexander William Salter’s “Fed Tapering Won’t Beat Inflation”

The Wall Street Journal of 10/29/2021 featured Alexander William Salter’s article “Fed Tapering Won’t Beat Inflation”.  Professor Salter is courageously tackling an important issue.  We respectfully suggest that he consider the following: Tapering is not reversing.  It is a negative acceleration but, still, a positive velocity.  Continue reading

The Economic Process Is The Current Process, Grasped In A Unified Whole, Requiring The Contribution of Academics, Control Theorists, And System Dynamicists

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)

 

Bootcamp To Educate the House, Senate, Federal Reserve, and Bureau of Economic Analysis, Especially Janet Yellen and Jerome Powell

One Week Bootcamp

Restricted to persons with solid backgrounds in mathematics and the natural sciences

Topics

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Conflicting Ways Of “Viewing” The Objective Economic Process

Click on the topic desired.

.1. Lonergan’s “Macroeconomic Field Theory” (MFT), AKA “Functional Macroeconomic Dynamics” (FMD)

.2. Marxism

.3. Modern Monetary Theory Quackery (MMQ)

.3.1. Stephanie Kelton’s “The Deficit Myth”

.4. Establishment Economics

.5. Commonsense Economics vs. Scientific Economics

 

Explanatory Conjugates; Formal Implicit Relations; Ideal Frequencies

… V. Lenzen in his Nature of Physical Theory emphasizes the genetic process that begins from experiential contents of force, heat, extension, duration, etc., to move through a process of redefinition towards terms implicitly defined by empirically established principles and laws.  .. Lindsay and Margenau in their Foundations of Physics, … may be said to exhibit a preference for terms implicitly defined by equations.  [CWL 3, 81-82/105]

Macroeconomics is an explanatory science; as explanatory it explains; as science it employs scientific method. (Continue reading)

Field Theory in Physics and Macroeconomics

We hope to inspire serious graduate students of economics a) to seek and achieve an understanding of “Macroeconomic Field Theory,” b) to verify empirically Lonergan’s field relations,  and c) to use the explanatory field relations as the basis of influential scholarly papers.

We trace developments

  • in physics from Newtonian mechanics to modern field theory, and
  • in economics from Walrasian supply-demand economics to purely relational, Modern Macroeconomic Field Theory.

Key ideas include a) abstraction and implicit definition as the basis and ground of invariance in both physics and macroeconomics, b) the concept of a purely relational field, c) immanent intelligibility and formal causality, and d) the canons of parsimony and of complete explanation. We highlight some key ideas: (continue reading)