The Chimera of Macroeconomics

  There are three types of arbitrage in association with  trade in the market. As arbitrage becomes prevalent, prices will be converging to a particular price level .  There in economics as abstract science will be “one price” of each (independent) event which must be defined per period .              In reality, what we have is not anything more than a rough trend to convergence, subject first of all to information deficiency disorder (IDD). When it comes to crossing over periods, the IDD gets even more problematic due to the maxim, “The only constant is change.” By definition of the would-be “doomsayer” (Heraclitus), the change is over the lapsing time (T -1 ).              By the way, “ asymmetric information ” is anything but news if in the real economy of unanimous and ubiquitous IDD. On the flipside, “being constant” would be news of GOST, or t...

  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...