Fallacy of Composition: The So-called General Equilibrium Model
Certain celebrity macroeconomists are fond of playing with GEMs for general equilibrium models. They must be kidding! Equilibrium in the paradigm of particular market does not necessarily lead to equilibrium in the model of general economy. On the contrary, what is true between a definitive few is never and nowhere true of indefiniteness, much less infinity. More simply, the market has nothing whatsoever to do with the economy: consequentially, the distance between economics and macroeconomics is no shorter than from Here to Eternity. Now, “for the sake of convenience” as usual among those macroeconomists, we copy from somewhere else: (Quote) The Fallacy of Generality How many parts do we think our body, for instance, is composed of? The only feasible answer is “infinity.” We cannot manage the infinity because...