The Chimera of Macroeconomics

  To be fair, macroeconomics , supposedly “empirical,” was conceived by a certain thought leader who first differentiated the run between “short” and “long.” Afterwards come forward numerous models of “ equilibrium ”  (T 0 )  have.              Alas, 千慮一失 ( qiānlǜyīshī ) ! Master and disciples do take the metaphorical run (L for length in the space dimension) for the real run (T for length in the time dimension). Providentially in Cambridge , the time flies literally like an arrow over the space (L -1 ).              Down (0) with the time dimension (T)!              Ever since in Cambridge, any race when longer than the 50 m dash can be named as “the long run” upon the choice of convenience; 100 m is longer, 400 m is still longer and the like indefinitely. Such naming surely is true a...

  Suppose the product “widget” to be traded in the market of Mini-polis with a certain number of households.              For the sake of idealization we assume: ① T he widget endures half a year or so in average by ordinary uses of the household; ② T he utility per unit of widget declines at the household; ③ T he production cost per unit of widget increases over the month or so wherein the firm keeps the physical capital “fixed”; ④ T he invisible hand does not let wishful or dreaming traders in the market; the demander as potential purchaser shall be equipped with a wherewithal, or “money” as called in macroeconomics; the potential supplier with “widgets” to be provided in the month on demand; ⑤ C ertified public accountants take notes of individual exchanges in the market; ⑥ By various decrees of the commonwealth, the unit of account is the  thaler , while the book closing for the purpose of financial accounting...

  What? Well, the rest of us well aware owing to Benjamin Franklin that an organism if in equilibrium would be dead or otherwise unmoving.              One of the most typical cases of equilibrium might be of the balance: when the two sides weigh the same to a certain acceptable extent, we declare the system is “in equilibrium.” The other cases would include the clock, the vending machine, the “driving machine,” the robot, the sewage system (?) and the solar system. Supposedly they are in equilibrium as at the moment of interest. The generic name for such systems is the mechanism with a definable number of namable parts, each moving as designed or otherwise presupposed.               The mechanism might be opposed to the organism, which will be “finished when it finishes changing.” At any rate, a changing mechanism would be called “Out of Order” while an ...