Working paper at SSRN
Abstract Steve Keen has debunked a good part of standard economics. However, he has left standing the theory of profit. This is unfortunate because the theory of profit is the pivot of all theoretical economics. This tightly focused paper clarifies the factual relationship between profit and income, which should be helpful to put Keen's alternative to the standard approach on sound foundations.
This blog connects to the AXEC Project which applies a superior method of economic analysis. The following comments have been posted on selected blogs as catalysts for the ongoing Paradigm Shift. The comments are brought together here for information. The full debates are directly accessible via the Blog-References. Scrap the lot and start again―that is what a Paradigm Shift is all about. Time to make economics a science.
November 22, 2013
November 16, 2013
The Ideal Economy: A Prototype {46}
Standard economics starts with behavioral assumptions that are formally expressed as axioms. This approach met with little scientific success but still enjoys some popularity for lack of a convincing alternative. To replace the subjective formal foundations with objective structural axioms is the first task of this paper. To give a correct account of how the monetary economy works is the second. This entails an explanation of the continuous clearing of both the product and the labor market in the random consumption economy, that is, of how the economy could establish ongoing full employment and price stability in principle.