The Common Error of Common Sense: An Essential Rectification of the Accounting Approach
AbstractThis paper takes the explanatory superiority of the integrated monetary approach for granted. It will be demonstrated that the accounting approach could do even better, provided it frees itself from theoretically ill-founded notions like GDP and other artifacts of the equilibrium approach. National accounting as such does not provide a model of the economy but is, rather, the numerical reflex of the underlying theory. It is this theory that will be scrutinized, rectified, and ultimately replaced in what follows. The formal point of reference is "the integrated approach to credit, money, income, production and wealth" of Wynne Godley and Marc Lavoie.
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Bibliographic InfoPaper provided by Levy Economics Institute in its series Economics Working Paper Archive with number wp_731.
Date of creation: Sep 2012
Date of revision:
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New Framework of Concepts; Structure-Centric; Axiom Set; Primacy of Theory; Income; Profit; Distributed Profit; Money; Flow; Residual; Transaction Matrix; General Complementarity;
Other versions of this item:
- Kakarot-Handtke, Egmont, 2012. "The common error of common sense: an essential rectification of the accounting approach," MPRA Paper 43196, University Library of Munich, Germany.
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
- E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-30 (All new papers)
- NEP-HME-2012-09-30 (Heterodox Microeconomics)
- NEP-HPE-2012-09-30 (History & Philosophy of Economics)
- NEP-MON-2012-09-30 (Monetary Economics)
- NEP-PKE-2012-09-30 (Post Keynesian Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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