Category Archives: Field Theory

A Closely Knit Frame of Reference; the Channels Account for Booms and Slumps, for Inflation and Deflation,

The interconnected channels of the Diagram of Rates of Flow provide a closely knit frame of reference.  The channels account for booms and slumps, inflation and deflation.

The method of circulation analysis resembles more the method of arithmetic than the method of botany.  It involves a minimum of description and classification, a maximum of interconnections and functional relations.  Perforce, some description and classification are necessary; but they are highly selective, and they contain the apparent arbitrariness inherent in all analysis.  For analytic thinking uses classes based on similarity only as a springboard to reach terms defined by the correlations in which they stand.  To take the arithmetic illustration, only a few of the integral numbers in the indefinite number series are classes derived from descriptive similarity; by definition, the whole series is a progression in which each successive term is a function of its predecessor.  It is this procedure that gives arithmetic its endless possibilities of accurate deduction; and, as has been well argued, it is an essentially analogous procedure that underlies all effective theory. [CWL 21, 111] Continue reading

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

Contents

  • .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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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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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)

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

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)

Scientific Generalization by Functional Analysis of the Network of Interdependent Rates

The non-Euclideans moved geometry back to premises more remote than Euclid’s axioms, they developed methods of their own quite unlike Euclid’s, and though they did not impugn Euclid’s theorems, neither were they very interested in them; casually and incidentally they turn them up as particular cases in an enlarged and radically different field. Continue reading

The Animal Organism and the Economic Organism

CONTENTS:

  1. THE STUDY OF ORGANISMS – ANIMAL AND ECONOMIC
  2. DETERMINISM AND INDETERMINISM – DISAGREEING WITH EINSTEIN
  3. CORRESPONDENCE IN THE CURRENT BASIC DYNAMIC, ORGANIC PROCESS; A DETERMINATE ALGEBRAIC FUNCTION OF THE FIRST DEGREE
  4. CORRESPONDENCE IN THE SURPLUS DYNAMIC, ORGANIC PROCESS; AN INDETERMINATE POINT-TO-LINE CORRESPONDENCE
  5. AVOIDING A VICIOUS CIRCLE OF CRITICISM
  6. THREE IMPLICITLY-DEFINED CIRCULATORY ORGANS
  7. THE TRANSITION TO SYSTEMATIZATION
  8. THE ROLE OF MIND IN THE DEVELOPMENT OF THE HUMAN AND THE ECONOMIC ORGANISMS

 .1. THE STUDY OF ORGANISMS – ANIMAL AND ECONOMIC:  (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 into 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

Facing Facts: The Ideal Of Constant Value Of The Currency vs. The Fact Of Inflation

 

We have recited some aspects of the dynamic economic process:

    • (Dummy) money “must be constant in exchange value.”
    • Prices alone do not explain the economic process. Prices must be interpreted in the light of those significant variables which actually explain the economic process.
    • The economic process of production and exchange always is the current, purely-dynamic process
    • The economic process is an organic whole
    • The process has an exigence for a normative pure cycle of expansion.
    • Equilibrium requires the keeping of pace and balance among interdependent flows of products and money
    • Scarcity is the normal cause of inflation
    • Maladjustment of incomes is the maladaptive cause of inflation
    • Just as the surplus phase of the expansion is anti-egalitarian in tendency, postulating an increasing rate of saving, … so the basic phase of the expansion is egalitarian in tendency; it postulates a continuously decreasing rate of saving [CWL 15, 139]
    • The central adjustment to the respective phases of the process may be formulated as adjustment of I”/(I’ + I”), the ratio of surplus income to total income
    • Interpreters of prices must distinguish between real and relative price increases monetary and absolute changes in prices We have recited some aspects of the dynamic economic process: (Continue reading)