The Chimera of Macroeconomics

  There are two broad categories of reasons why we compete: push (yin) and pull (yang). By nature, first of all, we love competition. Otherwise, we would have never created competitive games , plays , contests , races and the like. Most of us are pulled by competition, while a few are fooled not only once but also “so many times.” Incidentally, “so many” means excessiveness according to the Confucian dictionary.              The second reason of “push” is economic, a must as for subsistence and pleasures. Needless to say, economic rationale is of our main interest. Here again, there are push (-) and pull (+). Unlimited desires. If our desires were limited, we would have been, continuously over and consistently across, living in the hunter-gather age far from belonging to or yearning for “ leisure class .” Notably again, “consistently across” (L -1 ) is to macroeconomics , what “continuously over” (T -1 ) is to economics .      ...

  “Give me a one-handed Economist. All my economists say 'on ONE hand...', then 'but on the other’” is said to have been said by the former US president Harry S. Truman . The complaint notwithstanding, each and all economists have by creation two hands.              Economists are supposed to work, individually and collectively, on the economy. As such, the real question is, “How many hands does the economy have?” Needless to say, the answer depends on whom we ask the question of. The Liquidity Preferrer . As the case may be, at a certain level of interest rate people “unanimously” prefer the liquidity to all the other assets, physical and financial. This must fair-ly and fairy-ly mean that the velocity of money ( V ) falls down to the earth, or “the absolute zero base” as sometimes called, and that positively out of blue: V= 0 , period.              First ...