1.              Dynamic Heuristic and Method

A heuristic is a guide to an inquiry. It will state the type of answer to be sought and the method to be used. Lonergan, and we, adopt a scientific and dynamic heuristic

… heuristic structures and canons of method constitute an a priori. They settle in advance the general determinations, not merely of the activities of knowing, but also of the content to be known. [CWL 3, 104-105/128]

In his search for explanatory theory, Lonergan developed a scientific and dynamic heuristic guiding his search for general laws that govern and explain the current, purely dynamic, concrete, economic process. It is always the current process; it is the process being conducted right now, or in this period. It is a concrete process in which we all participate. And it is a process of interrelated, mutually conditioning, velocitous functionings.  As a velocitous process, it is dynamic. So, Lonergan’s heuristic had to be adequate to the nature of the process in all respects. (Continue reading)

Pure interest payments are payments from one human party to another human party.  There is, simultaneously, a cash outflow from one person or organization of human persons and a cash inflow to another person or organization of human persons. All pure interest payments ultimately circulate functionally as initial, transitional, or final payments within the basic and surplus channels of circulation. There’s no big mystery here.

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There’s nothing as practical as good theory.

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Paul Krugman, John Greenwood, Steve H. Hanke, Philip McShane, N. Gregory Mankiw, John H. Cochrane, Alan S. Blinder, Raymond Thomas Dalio, Thomas Piketty, Joseph Stiglitz, Ben S Bernanke, Elizabeth Warren, Frederick G. Lawrence, Michael Gibbons, Karl Marx, Bernard Lonergan, Janet Yellen, Dr. Lindsey Piegza, Larry Summers, S. Peter Burley, Momma, Paul Romer, Stephanie Kelton, Ragnar Frisch, Robinson-Eatwell:

• Paul Robin Krugman
  • Click here.  https://functionalmacroeconomics.com/a-contrast-understanding-pricing-in-macrostatic-dsge-vs-macrodynamic-fmd/ 
• John Greenwood and Steve H. Hanke
  • Click here.   https://functionalmacroeconomics.com/2021/11/12/john-greenwood-and-steve-h-hankes-the-monetary-bathtub-is-overflowing/
• Philip McShane
  • Click here.  https://functionalmacroeconomics.com/2023/06/09/a-mcshane-sampler-relevant-to-macroeconomics/  
  • Click here.  https://functionalmacroeconomics.com/acknowledgments/ 
  • Click here.  https://functionalmacroeconomics.com/2018/10/07/the-simple-move-to-two-explanatory-circuits-new-foundations-of-a-scientific-dynamics-nipas-gdp-replaced-by-fmds-gdff/
  • Click here. https://wp.me/p2R9Im-3eV  Philip McShanes Lecture Notes for a Yearlong Course in Physics

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The Wall Street Journal of Wednesday, August 2, 2023 featured an article by John H. Cochrane (Hoover Institution and Cato Institute) entitled What We’ve Learned About Inflation.

Preliminarily we state some ideas which, it seems, neither John H. Cochrane nor Alan S. Blinder understand and appreciate:  Continue reading →

The foregoing Section 13 (entitled Rates of payment and transfer) defined two circuits of outlay, income, expenditure, receipts, a pair of crossovers, and four pairs of transfers between the redistributive function and the demand and supply functions. The present section is concerned to watch the circuits in motion, and more particularly to inquire into the conditions of their acceleration. The inquiry involves three steps: first, one asks what is the possibility of circuit acceleration when the crossovers balance and each of the four pairs of transfers cancel, so that the quantity of money in each of the circuits remains constant. [that is, when (S’-s’O’), (S”-s”O”), (D’-s’I’), (D”-s”I”), and G are each zero]. Secondly, we ask what is the possibility of circuit acceleration when the crossovers balance, transfers to the demand functions balance, but transfers to the supply functions do not [that is, when (S’-s’O’) (S”-s”O”), are positive or negative but (D’-s’I’), (D”-s”I”) and G remain zero]; thirdly, one asks what happens if the crossovers or the transfers to demand do not cancel [that is when none of these is zero].  (Continue reading at CWL 15, 56)

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