Introduction (Textbook Flaws and Deficiencies)

The popular textbooks of Macroeconomics – by N Gregory Mankiw, Paul Krugman and Robin Wells, Olivier Blanchard, Andrew B. Abel and Ben S. Bernanke, William J. Baumol and Alan S. Blinder – suffer in common from several flaws.  Our subheadings immediately below and the pointers thereafter point out flaws and deficiencies in textbooks commonly used in higher education. Though the treatments in tis section are not exhaustive, they are sufficiently provocative; they should stimulate careful scrutiny of and skepticism regarding many traditional and conventional tenets.  Finally, though the treatments in this section are relatively brief and often primarily referential, there is a lot of ground to cover; so, we will underline and publish as time allows.

  1. This Introduction
  2. The nature of the current, purely dynamic economic process
  3. Scientific macroeconomics explains rather than merely describes
  4. A theory of macroeconomics must be independent of human psychology and anthropology
  5. The author of a textbook must employ a scientific and dynamic heuristic
  6. Real Analysis
  7. The idea and technique of implicit definition
  8. A field theory of accelerations, and the formal cause
  9. The difference between postulating and explaining
  10. The most fundamental terms must be precisely analytical and of scientific significance.
  11. The Leibnitz-Newtonian shift of context
  12. The intrinsic cyclicality of the process
  13. The process as a process of value
  14. Concomitance
  15. The need for a normativetheory
  16. The ideal pure cycle at the root of the trade cycle
  17. Rates of saving vs. rates of consumption
  18. The interest rate is an inner relation of the process, not an external lever
  19. Manipulation of the interest rate is double-edged
  20. The Fed is assigned responsibilities which belong to others and for which it has not the tools
  21. The IS/LM Model
  22. The Phillips Curve (employment and inflation)
  23. The Theoretic of Credit and how money should enter the process
  24. Savings are not to be identified as an increase in the money supply
  25. The ineptness of the double-edged manipulation of interest rates
  26. Cobb-Douglas assumptions
  27. An adequate theory of philanthropy
  28. The NIPA are not explanatory
  29. An understanding of phases and crises
  30. Why the basic expansion fails to be implemented
  31. The velocity of money
  32. The quantity of money, and Quantitative Easing’s bifurcation of purchasing power
  33. The mitigation and concealment of non-normative balance in one set of flows by another set of flows
  34. The idea of a mechanism
  35. The responsibilities of banks