From Cambridge to Eternity: “Marginal Propensity to Consume 05”
Let us get back to the reality from Cambridge macroeconomics. First of all, we must admit that the gross domestic products (GDP) and the gross national income (GNI) are estimated in the national income accounting. Second of all, the so-called “financial accounting” as such is designed to be conducted with many names given in GAAP (for generally accepted accounting principles). Trivial yet thirdly, GDP and GNI are a matter of naming. We for the sake of convenience disregard the difference in the two names, “domestic” and “national.” Nominalism of “Unit of Account.” To begin, the thaler in virtual and the dollar in real, both as unit of account, are a matter of naming. More critically, all accounting, particularly “financial” shall be done with the name of “money” as currency; the name shall be continuous ...