The Chimera of Macroeconomics

  The market as featured in economics is a typical microcosm out of indefinitely many markets for trade in goods, services, rental rights, physical or intellectual assets and credits or other financial instruments. By conception, there in each and all the markets surely is the unit of account (U), such as $, €, ¥ or ₤, dictated by the sovereignty.              Moreover, there on each side of demand or supply is absolutely no budget limit to each and all participants. Each item such as the apple takes the infinitesimal , so to speak, out of the whole budget for all the utilities of various disguises of all the members of each household; the same for all the participating households in the market of the community.              Here we make a thought experiment, or a scenario game of imagination. We apply the market logic to the consumer choice model et cetera ...

A great problem of economics is an abundancy of misnomers, misleading, oxymoronic or outright deceptive. One out of so many is the so-named “exogenous variable.” It should be called parameter instead. The two of “variable” and “parameter” are different species, period.              By definition in mathematics all variables are endogenous , or internally related. On the contrary, a parameter is external, or “exogenous” to the intrarelationship. By practice in mathematics, in addition, all variables and parameters go naked, with no dimensions of any kind and no scales of any degree. Neither a specific name nor a title, either. By the wayside, such names as “dependent” and “independent” of variables are sheer “in name only”: equations are silent to the causality of science.                 As opposed to mathematics, the nature and the economy have dimensi...