The Chimera of Macroeconomics

  Solving the trouble of mismatch between the unlimited desires and the limited resources most of us rely on “the market” for trade after specialization called hereinafter “commerce.” The purpose is of course efficientiating the process from production to consumption. Bridge 2.0 over Troubled Water . On the flipside of being confined to 125 years (T -1 ), life is cyclical. As a result, we are destined to manage obtainable utilities as efficiently as possible over the long run  of lifetime. Individually like Robinson Crusoe and collectively as Mr. and Ms. Does we “manage the portfolio” of assets, human and physical.              In the earlier cycles, we buy, or invest in, physical or human assets; while on the other hand we as needed sell credit , or “short-sell an asset,” usually human but sometimes backed up with physical. In the later cycles, we disinvest of physical assets partly to make up for the shortage i...

  In the year 2525 in the two “autonomous” cities of Anglo-America, everywhere endogenous was everything except for the public spending ( G in macroeconomics), the communal investment ( I ), and the MPC ( ΔC/ ΔY ). Once upon a time in the South, on the other Earthly side, there were so many “commonwealths” where everything but the government and fiscal dis-spending ( ----- G ) was endogenous.              To begin, we vary a couple of definitions. First, Y= C+ I + G , all in “nominal.” Second, there are two kinds of constancy, that is, “fixed” yet discretional and everywhere “constant.”   A Downturn and Fiscal Policy . When the GDP ( Y ) was expected to go on as ordinary (in the year 2525), the fiscal outlays ( G ) were constant, or “fixed” as often assumed “for the sake of simplicity.” The GDI ( I in macroeconomics) was “fixed.” The MPC, defined as the cross-scenario gap in consumption vis-à-vis the gap in GDP,...