Category Archives: Organicism

The Ineptitudes in Central Bank Operations

This entry should be read in conjunction with the reading of The Road Up is the Road Down; The Mechanism of Rising or Falling Prices.  Also, in “the Road UP …”, note well the phrase “a merely theoretical possibility.”

Recently the Executive and Legislative Branches, through the agencies of the Treasurer and the Federal Reserve Board, have flooded the economic system with free money.  Much of the resulting surfeit of new money is detached from any productive contribution.  This free, intrinsically inflation-constituting money has had to sit or go somewhere and constitute an effect in circulations of the basic circuit, the surplus circuit, and the secondary market for stocks, bonds, housing, etc.  Thus, in order to understand the present inflationary situation, an explanatory “Essay in Circulation Analysis” is a present need.

Please keep in mind that Lonergan, in his purely theoretical essay, does not treat specifically the actual recent flooding of the money supply, and the associated ultra-low interest rates, in the two operative circuits and in the Redistributive Function.  But one can easily glean from his treatments the inflationary implications of this actual flooding and the manner of its correction.  Herein, as opportunity allows we graft onto his orthodox treatment comments regarding recent quantitative flooding.  We trust the reader to discern what are graftings and what are the underlying matters under discussion at that point. (Continue reading)

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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The Economic Process Is The Current Process, Grasped In A Unified Whole, Requiring The Contribution of Academics, Control Theorists, And System Dynamicists

The economic process always is “the current process” constituted by current  interdependent velocitous flows of so-much or so-many every so often.

The productive process is, then, the (current) aggregate of activities proceeding from the potentialities of nature and terminating in a standard of living.  Always it is the current process, and so it is distinguished both from the natural resources, which it presupposes, and from the durable effects of past production. [CWL 15, 20]

The goal of scientific analysis is explanation of the objective economic process, i.e. to discover the abstract immanent intelligibility which explains any particular configuration of flows of products and money in any instance.  Such immanent intelligibility would be always relevant and universally valid. (Continue reading)

 

Conflicting Ways Of “Viewing” The Objective Economic Process

Click on the topic desired.

.1. Lonergan’s “Macroeconomic Field Theory” (MFT), AKA “Functional Macroeconomic Dynamics” (FMD)

.2. Marxism

.3. Modern Monetary Theory Quackery (MMQ)

.3.1. Stephanie Kelton’s “The Deficit Myth”

.4. Establishment Economics

.5. Commonsense Economics vs. Scientific Economics