Procrustean Art of Backtracking: “Metric in Accounting”

 

A Joke of Everyone’s Favorite: Dependent on the answer, we can tell you who you are;

What is the answer to 1+1, the easiest arithmetic on earth?


1)     2, period: A schoolchild.

2)     Please Do Not Kid Me: A driver of the Mini

3)     2? : A neurotic, who knows he must say “2” but is in person not really sure why.

4)     5, period: A psychotic  

5)     Wishfully 1: A wedding master

6)     Possibly 1: A chemist

7)     Possibly anything: A physicist

8)     Explosion or implosion: A nuclear physicist

9)     11 with no question asked: A computer scientist

10) Probably 11: A “supplier to the market” of the chopstick

11) King sidelined: A Chinese (王, the king)

12) ….

13) > 2: A synergist to whom, “The total is bigger than the sum of its parts”

14) 0 at the end of the day: A CPA, who is trained to make AIAO (all in all out)

 

A Big Takeaway. Arithmetic or mathematics for that matter in itself does not give any policy implication to us who are no macroeconomist.

Down to Business. We can easily realize that we cannot account for any performance whatever directly out of arithmetic with no metric. For broad communication, the metric must be “generally accepted” in the community or in the discipline. It’s the “unit of account”!

             Fortunately or unfortunately, the metric in Cambridge macroeconomics is the concern of everyone except for renowned economists not excluding John R. Hicks and Robert Solow.

             At any rate, the metric consists of a scale each of various dimensions. The scale such as nanosecond, minute, hour, day, year and millennium are familiar to most everyone including macroeconomists. Most other kinds of scale are public as well.

             Alas, dimensions are of no interest to most macroeconomists. For instance, we have yet to hear what dimensions such critical “variables” as i, r, P and Y are in. To be fair, we in economics might well pay attention to relevant dimensions in order not to fall in the trap of the easiest arithmetic in Here.

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