Understanding Profit and the Markets: The Canonical Model
AbstractNeither Walrasians nor Keynesians have a clear idea of the fundamental economic concepts income and profit, nor of the interdependence of qualitatively different markets. Critique of these approaches is necessary but not overly productive. A real breakthrough requires a new set of premises because no way leads from the accustomed behavioral assumptions to the understanding of how the economy works. More precisely, the hitherto accepted behavioral axioms have to be replaced by structural axioms. Starting from new formal foundations, this paper gives a comprehensive and consistent account of the objective interrelations of the monetary economy’s elementary building blocks.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 48691.
Date of creation: 27 Jul 2013
Date of revision:
new framework of concepts; structure-centric; axiom set; income; profit; full employment; price stability; quantitative adaptation; primary markets; secondary markets; financial markets;
Find related papers by JEL classification:
- B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
- D00 - Microeconomics - - General - - - General
- E00 - Macroeconomics and Monetary Economics - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-05 (All new papers)
- NEP-HME-2013-08-05 (Heterodox Microeconomics)
- NEP-HPE-2013-08-05 (History & Philosophy of Economics)
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