The Chimera of Macroeconomics

  Again, where there is yin ( 陰 , yin ) there is yang ( 陽 , yang ). The invisible hand, the market and the economy always and everywhere have two hands. In the first place, “The purpose of production (+) is consumption (-)” (to Adam Smith). Where there is a giving hand (+) there is a receiving hand (-) and vice versa . Each and all of all the kinds of matters, except for “liquidity” in Cambridge, never die or fade away “into the thin air.”              Each and all entities, but for a nonentity (0) or an Eternity ( ∞ ), have two ends , or two hands if we will, one vs the other, south vs north, east vs west or the like. Surefire ( 明若觀火 ; 明若 观 火 , míng ruò guān huǒ ), the principle of mass conservation!   12) Effects of Sticky Wages . Sometimes in macroeconomics, the sticky wage is named as the culprit of the sticky price. True or false, good or bad, or right or wrong, where there is a wage payer there must be a ...

  In a sense, the great tragic comedy of macroeconomics starts from “so many” misconceptions to as many stillborn names. Macroeconomists shall heed to the Confucian saying two millennia and a half ago, “Masters get the names correct before trying to teach or lead people” ( 正名 , zhèngmíng ).              If you, for instance, shout “ Adrian ” while intending to call “ Private Ryan ,” thou shalt not be able to save him ante Eternity of both. Wake up!   Factory, Market vs. Economy . By naming, the firm resides on one side of the market facing the household on the other side. “Natural” or otherwise, “ sticky wages ” never equal to “sticky prices”: the former must also affect the demand curve and subsequently the latter. Don’t forget to remember that the household and the firm are legitimate residents in the community including the cities of Cambridge and affect one another. If you ever forget, you are destined to ke...