Category Archives: Monetary Circulation

Insight into the Baseball Diamond, Comprehending All in a Unified Whole

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 Analyze the Rhythmic Pattern of the Productive Process First?

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)

A New Paradigm

The Editors’ Introduction in Macroeconomic Dynamics: An Essay in Circulation Analysis [CWL 15] contains a 4 ½-page Section 5 (pp. liv-lix) entitled Macroeconomic Dynamic Analysis as a New Paradigm of Economic Theory.  It is difficult to imagine that any macroeconomist, who has read that section, would fail to be motivated to study seriously Lonergan’s Functional Macroeconomic Dynamics. That section should be read in its entirety. Here are some of the particular items in that section:  (If discontinued here, click on the title above)
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