I would add that the aims and limitations of macroeconomics (that is, the circulation analysis presented here) make the use of a diagram particularly helpful, … For its basic terms are defined by their functional relations. CWL 15, 54
For context of the above Diagram of Rates of Flow the reader may refer to page 55 of CWL 15. Also see on this website Insight into the Baseball Diamond; discovery and Implementation.
Depending on one’s momentary interest and point of view, this schematic may alternatively be called:
- The Diagram of Two Operative Circuits Connected by Operative Crossovers
- The Diagram of Functional Monetary Interdependencies
- The Configuration of Monetary Conditions
- The Diagram of Operative Functional Flows of Products, Payments, and Financings
- The Diagram of Monetary Channels
- The Diagram of Monetary Transfers
- The Diagram of the Monetary Correlates of the Productive Process
- The Diagram of Interdependent, Implicitly-Defining, Mutually-Conditioning Velocitous Functionings
- The Double-Circuited, Credit-Centered Diagram which Sublates, Supervenes, and Replaces the Single-Circuit, Credit-Centered Diagram of Macroeconomics Textbooks
- The Functional Framework
- (Colloquially) The Way the Process Works.
- (Colloquially, because of its shape) Lonergan’s Baseball Diamond
The diagram prescinds from a) trade imbalances, b) government surpluses and deficits, and c) other collective surpluses and deficits, which can be imaged by superposed circuits lacking vital c’O’ and c”O” flows. See CWL 15, 162-76