The economic process is a functioning.
The economic process is always the current process; its constituents are current aggregate flows of goods, services, and money.
The economic process is a purely dynamic entity, consisting of velocitous – therefore dynamic – functional flows of goods and services and money. Even a so-called static economy – one which is merely reproducing itself period after period – is constituted by interdependent, velocitous – therefore dynamic – flows of products and money.
The economic process is a process of value.
The productive process (is) a process of value. … production is not a merely technical affair;… intrinsically it is an economic affair, … production is for sale, production in view of and at every instant adapted to payments. [CWL 21, 114]
Science is explanation of the data of a concrete, dynamic process in the form of equations which explain the interrelated accelerations and decelerations of the concrete process. The abstract terms of the equations implicitly define one another by their functional relations to one another within the equations.
Science is not mere description using terms expressing the relations of the process to our everyday sensations and perceptions. Science is explanation. Science tells the reason Why.
Scientific macroeconomics is the explanation of the concrete economic process. The laws of the process are objective and independent of human psychology. There are not 300+ million versions of scientific macroeconomics based upon the population-wide, subjective perceptions of 300+ million individuals. For “science is of the general, and it is guided not by quantitative considerations but by the selection of significant differences.” [CWL 21, 58-59] The explanation is a cluster of coherent dynamic relations constituting single, general, and universal explanation.
The mathematical formulation of the functional interrelations of the process will yield objective norms for adaptation by human participants; it will tell how equilibrium is reached among the interdependent functional flows of the system; and, as general and universal, it will reveal in any instance when and to what extent the mutually dependent functional flows are unbalanced, disequilibrated, and distortive.
Scientific, functional, macroeconomic dynamics is “a general theory of dynamic equilibria and disequilibria.”[McShane 1980, 117]