Folks who are ‘fans of flowcharts’ do NOT get the macroeconomic #Flows right and have NOT realized that #Economics suffers from #FlowBalanceInconsistency since Keynes messed up #MacroFoundations. For the 3-sector case holds for macro #Profit Q≡(I−S)+(G−T)+Yd. Where is it? pic.twitter.com/P7UhTehpMT
— E.K-H (@AXECorg) February 23, 2022
Macroeconomic #Profit is Q≡Ec−Yw≡(PR−W)L≡(P−W/R)RL for the case of market-clearing X=O. This follows from the correct set of #MacroFoundations. New-Keynesianism is methodologically indefensible. ⇒https://t.co/3x9c31peUB pic.twitter.com/2SHiWnzV7L
— E.K-H (@AXECorg) February 23, 2022