The process is always the current, purely dynamic process. The analysis is purely functional, purely relational and explanatory analysis. The theory is general and universally applicable to concrete determinations in any Instance; The theory is a normative theory having a condition of equilibrium.
Our subheadings in this treatment are as follows:
- Always the Current Process:
- A Purely Dynamic Process Requiring a Dynamic Heuristic:
- A Purely Functional Analysis:
- A Purely Relational, Explanatory Analysis:
- A Theory, General and Universally Applicable to Concrete Determinations in Any Instance:
- A Normative Theory Having a Condition of Equilibrium:
Always the Current Process: Continue reading
The economy is composed of the production of two conceptually distinct, mutually-definitive types of goods. Depending on the context they may be named
- basic goods or surplus goods,
- consumer goods or producer goods,
- accelerated goods or accelerator goods,
- point-to-point goods or point-to-line goods.
An expansion of the surplus production function causes a later acceleration of the basic production function. First one surge, then later the other surge. Note the symbols for time (t) and (t-a) in the following formula, “the lagged technical accelerator.” (continue reading)
kn[f’n(t-a)-Bn] = f”n-1(t) – An-1 CWL 15, p. 37
New foundations for a new science of macroeconomics are grounded in
- a scientific, dynamic heuristic
- the technique of implicit definition
- precise, purely relational, analytical distinctions between fundamental terms representing functional flows of products and money
- the functional interrelations among these interdependent, mutually defining, explanatory functional flows
As both Aristotle and Lonergan acknowledged, forms are grasped by mind in images.
τα μεν ουν ειδη τον οητικον εν τοις φαντασμασι νοει
[Aristotle, De Anima, III, 7, 431b 2] and [CWL 3, title page]
Thus, if we want to have a comprehensive grasp of everything in a unified whole, we shall have to construct a diagram in which are symbolically represented all the various elements along with all the connections between them. [McShane 2014, 11 (quoting CWL 7, 151)]
We wish here to suggest the insights the reader should have to fully appreciate all that is contained in the Diagram of Rates of Flow. (continue reading)
Why did Lonergan analyze the structure and rhythm of the productive process before he analyzed the monetary aspects of exchange and the inner contradictions of the manipulation of interest rates?
Quick answer: Money is to buy goods and services. Payments of money are congruent with the network of the production and provision of goods and services. The production of goods and services is prior in the order of understanding to the correlated payments for goods and services. Therefore, the structure of the current, purely dynamic, productive process – as to factoral makeup, functional interdependencies, flow quantities, and timing – sets the pattern for the pattern of payments. It is conceptually prior to, and really determinate of, the normative flowings of money.
real analysis (is) identifying money with what money buys. … And that is the source of the problem in real analysis. If you want to treat money that doesn’t make a difference, you can have a beautiful liberal monetary theory. But it doesn’t say the way the thing works. [CWL 21, xxviii] (continue reading)