Burley’s essays and linear von Neumann models are treated elsewhere. See (TBD):
But in this context of money’s nature and purpose, it is appropriate to mention particular highlights of Burley’s essays and models. Important essays are
Burley, Peter and Csapo, Laszlo, (1992) Money Information in Lonergan-von Neumann Systems, Economic Systems Research, Vol 4, No. 2, 1992 [Burley, 1992-1]
Burley, Peter (1992) Evolutionary von Neumann Models, Journal of Evolutionary Economics 2 , 269-80 [Burley, 1992-2]
Burley, Peter (2002), A 3-Level Lonergan-von Neumann Model, Australian Lonergan Workshop 2, ed. Matthew C. Ogilvie and William J. Danaher, Sydney: Novum Organum Press 68-74 [Burley, 2002-1]
Burley, Peter (2002), Lonergan and Interest Rates, Australian Lonergan Workshop 2, ed. Matthew C. Ogilvie and William J. Danaher, Sydney: Novum Organum 61-67Burley, 2002-2]
Important highlights and conclusions of Burley’s essays are
- There is an intrinsic normative relation of the money exchange value (price) of consumer goods to the Money exchange value (price) of a capital asset.
- The values of capital and its fruits are determined by the relations among the technical coefficients of production and consumption
- Dynamic income is not static wealth, and static wealth is not dynamic income.
- The interest rate is an intrinsic relation determined by the dynamic relations of goods to one another in the phases of the productive process. It is not extrinsic to the process and, thus, not to be manipulated by manipulation of the money supply.
- The full-employment models explore and conclude as to the adverse effect of adjusting two of three adjustables: 1) the relative intensities of production, 2) the relative pricings of consumer goods and capital goods, and 3) the money supply.
- “Once upon a time” the quantities and durations of loans used to supply information about the expectations and plans of the private sector; but with (etc.)
- If the banker-producer combination agrees to an interest rate greater than the intrinsic growth rate and the intrinsic macroeconomic interest rate, the effect of the greater difference is to force contractions and layoffs. (in general, excess begets corrective forces by systematic necessity)