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)

# Category Archives: Interest Rates

# 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)

# Harvard Magazine’s Podcast, “Ask a Harvard Professor”

**Harvard Magazine’s podcast, “Ask a Harvard Professor,” **recently featured an interview of professors Doug Elmendorf and Karen Dynan – two good people – under the title **Doug Elmendorf and Karen Dynan: How Much Can the Federal Budget and the Deficit Continue to Grow?** (Click here for video and print versions of the interview)

# Notes Re Reading The Images and Graphs In CWL 15, pp. 121-25

In the graphs of CWL 15, pages 121-25, it is easy to become disoriented by the symbols on the vertical axes and by the titles and annotations. In particular, one might tend mistakenly to view ** Q** as a symbol for an absolute quantity or an accumulation rather than for a

**rate of flow**of a quantity. Recall:

In Lonergan’s circulation analysis,

the basic terms are rates–ratesof productive activities andratesof payments. The objective of the analysis is to discover the underlying intelligible and dynamic (accelerative) network of functional, mutually conditioning, and interdependentrelationships of these rates to one another. [CWL 15 26-27 ftnt 27]Lonergan

never used terms for magnitudes, only forrates and their accelerations (‘rates of rates’)in theEssay in Circulation Analysis. [CWL 15, 182]But if the ultimate product

qis related by a double summation to the contributions of factors of production_{i}q, then the total_{ijk}flowof ultimate products Q_{i}is also related by a double summation to theof the factors of productionratesof the contributionsQwhere both_{ijk},Qand_{i}Qare instances of_{ijk}the form‘so much or so many every so often.’(CWL 15, 30)In the graphs superscripts identify basic (‘) or surplus (“) elements. Absence of superscripts here indicates “in any case.”