William A. Rockefeller Sr. vs. Sir John R. Hicks
There
are one commonality and numerous differences between the two gentlemen of fame.
Differences first:
1) American
vs. British
2) In
the 19th vs. in the 20th century
3) Salesman
all across the nation vs. Economist at Cambridge
4) ……
5) ……
6) ……
7) So
on
8) So
forth
Only
commonality next:
***Snake
oil vendor (by profession or otherwise, wittingly or not)
Don’t get us wrong: J.R. Hicks’ “equation
of Cambridge Quantity” is nothing but ineffective
amalgam of Finance (about ownership of financial assets at a moment in
time, T0) and Economic activities (per annum, T-1). In Economics jargon, the former is a “stock”
and the latter a “flow.” The two of them can be associated, if ever, with a
variable of time duration; that is, Stock (T0) = Flow per period (T-1) times Number of periods (T1),
period. The Nobel Prize notwithstanding, J.R. Hick’s prescription violates the Three
R’s of Us aliens.
An unworkable cure or prescription thereof is in General called elixir
also known as snake oil.
Note.
The “Cambridge Quantity equation” (one year after General Theory in 1936): M=
k∙I,
where Liquidity Preference, a Constant and the Nominal GDP in order. The time
dimension is disregarded all through the Equation like in the Eternity (T0).
Long live la Theoria Particula!
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