Saving "the Market” out of Cambridge: “Accounting Period”
Most troubles with Cambridge macroeconomics stem from fatal misunderstanding of the market framework. Just one of so many tragic instances is the comedy-like narrative, “In the money market, the demand for money slopes downward because the interest rate is the opportunity cost of holding money.” Those macroeconomists get each and every term of the single sentence wrong. For the purpose of “getting the market correct,” we navigate through as follows: 1) Setting the boundary 2) The demand curve 3) The supply curve 4) The opportunity cost 5) ...