Category Archives: Paul Krugman

Why Economists Don’t Flock to Functional Macroeconomic Dynamics

Economists don’t have the methodological and conceptual toolkit needed for appreciation of FMD’s scientific and historical significance.

  • They don’t know what they don’t know
    • They’re not methodologists and don’t know what constitutes good theory.
    • They never read CWL 3 and, thus, they never studied the canons of empirical method, especially the Canon of Parsimony and the Canon of Complete Explanation; they have no idea of the deficiencies of their method.
  • Thus, they lack a purely scientific and explanatory heuristic.
    • They do not adequately distinguish description vs. explanation.
    • They do not know the type of answer they’re seeking, i.e. their known unknown.
    • They do not put questions in the right order to discover basic terms of scientific significance.
    • They are mired in muddy premises and faulty assumptions.
    • They are unable to employ a scientific, dynamic heuristic adequate for analysis of a current, purely dynamic process.
    • They don’t understand the normative system’s requirement for concomitance of flows.
  • They lack a background in theoretical physics. They don’t understand the principles and abstract laws of hydrodynamics, electric circuits, or field theory.  Nor do they understand adequately the idea of continuity and the conditions of equilibrium in the dynamic process.  They are unaware of analogies from physics applicable on the basis of isomorphism to the phenomena of Functional Macroeconomic Dynamics. (Continue reading.)

 

 

Modern Monetary Theory Fails to Qualify as Scientific Macroeconomics

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)

Textbook Flaws and Deficiencies

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.

  1. This Introduction
  2. The nature of the current, purely dynamic economic process
  3. Scientific macroeconomics explains rather than merely describes
  4. A theory of macroeconomics must be independent of human psychology and anthropology
  5. The author of a textbook must employ a scientific and dynamic heuristic
  6. Real Analysis (read more)

Wouldn’t It Be Good If There Were A Scientific, Functional, Macroeconomic Dynamics On Which All Could Agree?

Wouldn’t it be good if there were a scientific Functional Macroeconomic Dynamics on which all could agree?

http://ricardo.ecn.wfu.edu/~cottrell/ecn272/cochrane.pdf

https://gregmankiw.blogspot.com/2017/12/paul-krugmansigh.html

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/