The Chimera of Macroeconomics

    In the beginning there was Value. We in economics are interested in value particularly associated with utilities, or “happiness” in the utilitarian language. Then, the opening question in discourse of economic value might well be, “What kinds of value are there in the beginning?” A fairly plausible answer will be, there are two kinds, i.e. raw ideas and raw materials . The former are of us, the humans, while the latter owing to Mother Nature.                In old times, raw ideas were created and processed into knowledge at each household. More publicly in modern times, the firm rents brain powers for research in search of raw ideas. When potentially useful, a set of raw ideas is patented and subsequently becomes a tradable asset , usually intermediate yet possibly final.              Again, the step-wise value-addition takes place gener...

  Many a macroeconomist refers to “empirical science.” Is physics one? Is chemical engineering another? Is economics a third? Is finance a fourth? Is macroeconomics yet another? What about “political science”? Science for Abstract Theories . Through history, mathematics used to be named as “science” (e.g. J.S. Mill, 1861). In modern times, it is not so any more. Particularly in the US, the term STEM differentiates science, technology, engineering and mathematics from one another. Generally speaking: ①    Science is of idealized abstract theories from observations and experiments of the reality, natural or economic. ②    Technology is a set of theories and other knowledge more or less readily applicable to the practice. ③    Mathematics is for the sake of convenience in calculation while being silent to causality and blind to metric of dimensions and scales. By the way, measurement is one calculation is another; the former with metric the latter...