Scientific macroeconomics, if it is to be genuinely scientific, must not be contaminated by human psychology. Gustav Kirchhoff’s laws of the electric circuit do not incorporate the psychology of the human who operates the levers or switches. So, Lonergan, the scientist, strove to discover the purely relational, purely functional laws of the circuits of the objective economic process. Unfortunately, many proponents of Modern Monetary Theory exhibit sentiments and inclinations favoring a totalitarian bureaucracy for the management of fiscal and monetary affairs. Their purported science contains some valid assertions, but is not a coherent set of objective laws to which participants must adapt, regardless of sentiment; rather MMT is an admixture of several ideological and psychopolitical sentiments transformed into a contaminated set of mandates for the management of fiscal and monetary affairs. The tenets of MMT fail to constitute a fully explanatory theory of macroeconomic dynamics. (to continue reading, click here)
The popular textbooks of Macroeconomics – by N Gregory Mankiw, Paul Krugman and Robin Wells, Olivier Blanchard, Andrew B. Abel and Ben S. Bernanke, William J. Baumol and Alan S. Blinder – suffer in common from several flaws. Our subheadings immediately below and the pointers thereafter point out flaws and deficiencies in textbooks commonly used in higher education. Though the treatments in this section are not exhaustive, they are sufficiently provocative; they should stimulate careful scrutiny of, and skepticism regarding, many traditional and conventional tenets. Finally, though the treatments in this section are relatively brief and often primarily referential, there is a lot of ground to cover; so, we will underline and publish as time allows.
- This Introduction
- The nature of the current, purely dynamic economic process
- Scientific macroeconomics explains rather than merely describes
- A theory of macroeconomics must be independent of human psychology and anthropology
- The author of a textbook must employ a scientific and dynamic heuristic
- Real Analysis (read more)
Wouldn’t it be good if there were a scientific Functional Macroeconomic Dynamics on which all could agree?
Also, see on this website under Five Images: Sublationhttps://functionalmacroeconomics.com/table-of-contents/five-images/sublation/
Also see Subsumption and Sublation of Keynes, Kalecki, Solow and others: https://functionalmacroeconomics.com/table-of-contents/subsumption-and-sublation-of-keynes-kalecki-solow-and-others/