The Chimera of Macroeconomics

According to the Apostle Paul from New Cambridge, “Money is of no use to us until we get rid of it ( Economics , 2010, p.458).” By design or by chance, he in that particular regard is a short run away from Irving Fisher at New Havens ( The Theory of Interest , 1930, p.5).              Ever since the outset of Uncommon Era in 1936 CE, side by side, “ money ” has been a holy grail to the “intellectually honest.” The name in the “theory.” Macroeconomists say “liquidity preference ” while meaning to “get rid of money.” An “autonomous” question to follow: What on Earth is “money”? Is ‘liquidity” a good of utility or a bad of disutility?              They say money’s found three faces new; that is, the unit of account , the medium of exchange and a store of value. That’s a nice try but off the mark, whether in the short or long run of distance. The raison d'être of money, according to t...

  1)      There is no such thing as “the” as far as theories are concerned. A theory as regards a certain kind is a matter of “degree” of confidence. Or, theories are approximations to “actual processes.” At best, “the theory” is of one’s own naming. 2)      There is no such thing as “General” which is applicable to three kinds combined, such as Employment, Interest and Money. Amongst the rest of us, in this particular case of “General,” Employment is for the discipline of Economics and Money is of the discipline “ Money, Banking and Finance .” The former is on working over the time in the same space; while the latter about walking across the space in  the same time. The two are beyond combination or consolidation. It would, if anything, a chimera from alchemy.                  In the middle of the two vices is the virtue of Interest , subject to “a virtue ...

  For a starter, Macroeconomics is no more economics than Metaphysics is physics. Among other nonsenses, macroeconomics is laden with misnomers . We mean “oxymora in the bad and wrong meaning,” however popular and influential they may be.              There in English vocabulary is a word “ oxymoron ,” which is sometimes of Sense and Sensibility; while other times of Nonsense and Insensibility. To the former do such terms as a “graduate student” and a “silent alarm” belong: To the latter such as “an ethical American lawyer” and “the Cambridge Quantity equation ” ( J.R. Hicks , 1937). The GOAT: “ In the long run we are all dead .” Certainly we are all dead post crossing the River, or posthumous . Equally “obvious,” we are not in Here ante birth, or prenatal . We exist in this world merely in between prenatal and posthumous.                ...

  We revisit an insightful observation of J. S. Mill : Take, again, such a familiar case as that of a good system of taxation and finance. This would generally be classed as belonging to the province of Order. Yet what can be more conducive to Progress? A financial system which promotes the one, conduces, by the very same excellences, to the other. Economy, for example, equally preserves the existing stock of national wealth, and favors the creation of more. –Words on a good taxation system to follow- ( Considerations on Representative Government , 1861, Ch. II)      Roughly saying, incidentally, Order is to stability of the systems of taxation and finance what Progress is to growth of the economy . Several pages later, Mill additionally clarifies that Order and Progress are of “a difference merely in degree” as opposed to “these two functions of a government” (“upon men” vs “upon things”) being different in kind.        ...

  We manage the lifecycle not only physically but also economically. Sometimes in economic life we are in the long position of the General purchasing force of Money, while other times in the short of the “ preferred liquidity .” Again, money as legal tender (U ∙ m) is a “unanimously current” means to the end of demanding for products (M ∙ U).                “Everywhere except for in Cambridge,” “the only raison d'être of money is in facilitation of trade”; while trade is no more consumption than productions is consumption. In the middle of the road, “Money is useless until a Time for Us to sing Con Te Partirò .”              Now the real question: How for us to bridge between the short of money and the long of money? Whatever it might be named took a long run in classical times and a medium run in modern times; but it takes at present as short a run ...