The Chimera of Macroeconomics

  Amazing, gracefully or otherwise, is that metaphors and analogies are taken for realities in Cambridge macroeconomics.   A Metaphor: “the Market”   1)      An accounting period (T -1 , or per period) and a community (L -2 , or per area) presumed as boundary conditions 2)      The quantity traded known at the end of period; prices possibly all different over the period 3)      A demand curve of per-unit utilities conceived from the highest to the lowest 4)      A supply curve of per-unit production costs imagined from the lowest to the highest 5)      The cross point of the two curves christened “the price” → Interpretation              The market (framework) is a metaphor for the sake of convenient communications by way of summing up the trade performance ex post facto with just two measures...

  An opening question: Is the market as in economics a conceptual framework or a sample marketplace as is in the reality? The most probable answer or the most realistic one at least will be a metaphorical framework of reasoning.             A flowing question: Have we ever seen a widely-recognized time-tested metaphor fail? A plausible answer would be “No, almost by definition.”             Well, “so many macroeconomists” so often blame the market for “failures,” the case number of which has ever been growing. More often than not, they are “barking up the wrong tree,” so to speak.             First of all, they miss the point that the market is of their own invention. If anything goes wrong therewith, they must point fingers at themselves. Put it differently, the market is the conceptual venue of trade with perfec...