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The Three Fatal Mistakes of Yesterday Economics: Profit, I=S, Employment

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  • Kakarot-Handtke, Egmont

Abstract

Axiomatization is the prime task of theoretical economics. Without correct axioms,no correct theory. Without correct theory, no understanding of how the economy works. Without empirically corroborated understanding, no useful economic policy advice. Yet, much more important than any political reputation of economics is indeed: without correct axioms, no acceptance as science. There is no way around it, neither for Orthodoxy nor for Heterodoxy. The conceptual consequence of this paper is to discard the subjective-behavioral axioms and to take objective-structural axioms as the formal point of departure. This enables the rectification of the most fatal analytical mistakes of conventional economics.

Suggested Citation

  • Kakarot-Handtke, Egmont, 2014. "The Three Fatal Mistakes of Yesterday Economics: Profit, I=S, Employment," MPRA Paper 58253, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58253
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    References listed on IDEAS

    as
    1. Kakarot-Handtke, Egmont, 2014. "Objective Principles of Economics," MPRA Paper 55031, University Library of Munich, Germany.
    2. Mark Obrinsky, 1981. "The Profit Prophets," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 3(4), pages 491-502, July.
    3. Kakarot-Handtke, Egmont, 2011. "Primary and secondary markets," MPRA Paper 32996, University Library of Munich, Germany.
    4. Kakarot-Handtke, Egmont, 2011. "Squaring the investment cycle," MPRA Paper 32895, University Library of Munich, Germany.
    5. Arief Anshory Yusuf & Djoni Hartono & Wawan Hermawan & Yayan, 2008. "AGEFIS:Applied General Equilibrium for FIScal Policy Analysis," Working Papers in Economics and Development Studies (WoPEDS) 200807, Department of Economics, Padjadjaran University, revised Oct 2008.
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    More about this item

    Keywords

    new framework of concepts; structure-centric; axiom set;
    All these keywords.

    JEL classification:

    • B49 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Other
    • B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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