Category Archives: Science and Explanation

A Normative Dynamic Structure, Despite Maladaptive Errors by “Infielders”

Functional Macroeconomic Dynamics has a definite, normative, dynamic structure. Evidently, there is a high degree of indeterminacy to events within such a dynamic structure.  All one can say is the game can go all awry. But despite this almost baffling indeterminacy, it remains that there is a definite dynamic structure. [CWL 21, 211-12]

The velocities of correlated, interdependent payments must keep pace and be in balance. Payments of dummy money move at velocities in circuits; e.g. O = I = E = R (CWL 15, 54) and O’ + O” = I’ + I” = E’ + E” = R’ + R” (CWL 15, 54)  The arrows in the Diagram of Rates of Flow  represent channels containing analytically-distinguished, interdependent, functional velocities.  These dynamic functionings are defined by the functional relations in which they stand with one another.

The intelligibility of the concrete process consists of two components: an abstract primary relativity expressing the normative systematic structure, and a secondary  component of concrete determinations from the non-systematic manifold.  There is a normativity to the dynamic structure.  An analogy from baseball may help to make the point regarding interdependence and keeping pace.

 

A large and positive crossover difference uncompensated by action from the pitcher’s box will result sooner or later in depriving the groups at second and third bases of all their balls, or if the crossover difference is large and negative, it will result in depriving the groups at home and first of all their balls.  Continue reading

Lilley and Rogoff Recommending Negative Interest Rates

We are commenting with respect to Andrew Lilley and Kenneth Rogoff’s “conference draft” discussing the advisability of a FRB policy of negative interest rates:

 Lilley, Andrew and Kenneth Rogoff, April 24, 2019: “The Case for Implementing Effective Negative Interest Rate Policy” (Conference draft for presentation at Strategies For Monetary Policy: A Policy Conference, the Hoover Institution, Stanford University, May 4, 2019, 9:15 am PST) [Lilley and Rogoff, 2019]     (Continue reading)

Ray Dalio re Debt Crises (originally posted 9/11/18, now repeated 9/17/20)

This is a slightly-revised repeat of a Post of 9/11/18.  It remains relevant to Mr. Dalio’s thinking.

The final paragraph of this Post is as follows: We hope that Mr. Dalio will study Bernard Lonergan’s Macroeconomic Dynamics: An Essay in Circulation Analysis (CWL 15) to advance his present considerable understanding even further so as to understand the real grounds that might make his predictions successful .  We hope that, as a person of influence, Mr. Dalio will convey a more advanced, explanatory understanding of the economic process to the nation and the world.

On 9/11/18 Ray Dalio, Co-Chairman and Founder of Bridgewater Associates, appeared on TV and reviewed some highlights of his new book, A Template for Understanding Big Debt Crises.  The book is presently available as a free PDF (with some strings attached).  An alternative, no-strings-attached, introduction to Mr. Dalio’s thinking is available on the Bridgewater website’s home page under the title The Economy, How the Economic Machine Works.

Mr. Dalio’s comments were cogent; they were somewhat aligned with much of what Lonergan has provided in his scientific systematics of the economic process.  Both would agree that the repetition of crises is not inevitable; crises are caused by repeated mismanagement. But what Dalio loosely describes Lonergan precisely explainsContinue reading

The Abstract and Concrete Components of Science (Brief Item #89)

[9/22/2020] (Bernard Lonergan, Albert Einstein) Because insights arise with reference to the concrete, mathematicians need pen and paper, teachers need blackboards, pupils have to perform experiments for themselves, doctors have to see patients, trouble-shooters have to travel to the spot, people with a mechanical bent take things apart to see how they work.  But because the significance and relevance of insight goes beyond any concrete problem or application, men formulate abstract sciences with their numbers and symbols, their technical terms and formulae, their definitions, postulates, and deductions.  Thus, by its very nature, insight is the mediator, the hinge, the pivot.  It is insight into the concrete world of sense and imagination.  Yet what is known by insight, what insight adds to sensible and imagined presentations, finds its adequate expression only in the abstract and recondite formulations of the sciences. [CWL 3, 6/30] [#89] (Click here for previous “Single Paragraphs” or “Brief Items”)

A McShane Sampler Relevant to Functional Macroeconomic Dynamics

Philip McShane had a strong background in mathematics and theoretical physics; thus he was able to understand the scientific significance of Bernard Lonergan’s macroeconomic field theory in an Einsteinian context.

First we display, in brief, key excerpts, many of which contain analogies from physics and chemistry, relevant to the science of Functional Macroeconomic Dynamics; then we show the same excerpts more fully within lengthier quotes. Continue reading

Theoretical Breakthroughs of Euclid, Newton, Hilbert, Einstein, and Lonergan

To help the reader gain an appreciation of Lonergan’s achievement of Modern Macroeconomic Field Theory we will, in each section, print leading excerpts, then highlight the key concepts of those excerpts. We will comment on the historically-significant advances in geometry of Euclid and Hilbert, in physics of Newton and Einstein, and in macroeconomics of Lonergan.

  • Euclid’s great achievement was his rigorous deduction of geometry.
  • Hilbert’s great achievement was his employment of implicit definition to reorder Euclid’s geometry.
  • Newton’s two great achievements were unifying the isolated insights of Galileo and Kepler into a unified system of mechanics and his invention of the calculus.
  • One of the great achievements of Einstein was the invention of the field theories of Special Relativity, General Relativity, and Gravitation.
  • One of Lonergan’s several great achievements was his systematization of macroeconomic phenomena in his Modern Macroeconomic Field Theory. He combined the technique of implicit definition introduced by Hilbert and the concept of a field theory developed by Faraday and Einstein; and he developed an explanatory macroeconomics, which is general, invariant, and relevant in any instance. (Continue reading)

Understanding All in a Unified Whole

“if we want 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 of the question along with all the connections between them.” [McShane, 201644]

Continue reading

“The Most Significant Book of the Twentieth Century”

from [McShane, 2017, Preface xii] “I have brought you face to face with the first page of the most significant book of the twentieth century.* There the man suggests: 1) that a key move is to pause over little things, 2) that Archimedes invented the permanent science of hydrostatics by focusing on a crown-weighing problem. You are on the edge of the invention of the permanent science of econo-dynamics. What is your next move? Obviously, if you are an economist, you get moving towards a Nobel Prize.”

*The book is Bernard Lonergan’s Insight, A Study of Human Understanding, 1957, 1992 CWL 3, University of Toronto Press.

The Wise Person Puts Questions In Their Right Order

In any analysis there is a right order of questions; and to violate this order is to invite misunderstanding, myth, and disaster.  To indicate the wisdom in Lonergan’s analysis, we present excerpts, mainly from his CWL 12,  which mandate clearly, for himself and for us, that one’s method and one’s heuristic necessitate putting questions in their right order.  The precepts apply whether one is doing physics, economics, philosophy or theology. Continue reading