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

# Category Archives: Isaac Newton

# 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)

# The Labor Theory of Value Debunked

Macroeconomists must grasp the difference between **economic value** and **exchange value**.

…

Adam Smith and all the proponents of the “labor” theory of value were never able to clarify the relationship between exchange value and “toil and trouble” as the measure of value.Lonergan shifted the issue entirely by explaining that an “economic valuerelates an object to human effort,butan exchange valuerelates objects among themselves.”^{31 (CWL 21, 31)}[Fred Lawrence; “Money, Institutions, and The Human Good,” inLiddy, 2010, 183-84]… , like

Smith, Locke, Ricardo, and Marxlater on,Aristotledid not seem to understand money in terms ofexchange value, andtherefore as relating objects among themselvesin relation to theconcomitanceor lack of concomitance between “thereal flow of property, goods, and servicesand thedummy flowbeing given and taken in exchange for the real flow.”^{39 CWL 21, 40}Still less did they grasp that in an advanced industrial society, the real flow and the money flow are channeled within two separate circuits of production and circulationfunctionally distinguishedinto producer goods and consumer goods, and operating inreal timein accord withdistinct phases of expansion. Besides misunderstandingmoney of account, they misunderstood therelationship of money to time.[Fred Lawrence; “Money, Institutions, and The Human Good,” inLiddy, 2010, 186] Continue reading

# A McShane Sampler Relevant to Functional Macroeconomic Dynamics

Philip McShane had a strong background in mathematics and theoretical physics; thus he was able to understand the scientific significance of Bernard Lonergan’s **macroeconomic** **field theory** in an **Einsteinian context**.

First we display, in brief, key excerpts, many of which contain analogies from physics and chemistry, relevant to the science of Functional Macroeconomic Dynamics; then we show the same excerpts more fully within lengthier quotes. Continue reading

# Theoretical Breakthroughs of Euclid, Newton, Hilbert, Einstein, and Lonergan

To help the reader gain an appreciation of Lonergan’s achievement of **Modern Macroeconomic Field Theory** we will, in each section, print leading excerpts, then highlight the key concepts of those excerpts. We will comment on the historically-significant advances in geometry of Euclid and Hilbert, in physics of Newton and** **Einstein, and in macroeconomics of Lonergan.

- Euclid’s great achievement was his rigorous
**deduction**of geometry. - Hilbert’s great achievement was his employment of
**implicit definition**to reorder Euclid’s geometry. - Newton’s two great achievements were unifying the isolated insights of Galileo and Kepler into a
**unified system**of mechanics and his invention of the calculus. - One of the great achievements of Einstein was the invention of the
**field theories**of Special Relativity, General Relativity, and Gravitation. - One of Lonergan’s
**several**great achievements was his**systematization**of macroeconomic phenomena in his**Modern Macroeconomic Field Theory.**He combined the technique of**implicit definition**introduced by Hilbert and the concept of a**field theory**developed by Faraday and Einstein; and he developed an**explanatory macroeconomics**, which is**general, invariant, and relevant in any instance**.**(Continue reading)**

# Understanding All in a Unified Whole

“if we want a

comprehensive grasp of everything in a unified whole, we shall have to construct a diagram in which are symbolically representedall the various elementsof the question along with allthe connections between them.” [McShane, 2016,44]

# Lonergan’s Laws of Economic Motion

Newton’s Laws of Motion are laws of **efficient cause**. In brief:

- A body at rest or in uniform motion remains at rest or in uniform motion unless acted upon by an(external,
**efficient-causal**)**force** *F = ma*;**force**equals mass times acceleration- When one object exerts a
**force**on a second object, the second exerts an equal and oppositely directed**force**of equal magnitude on the first. (Continue reading)