Working paper at SSRN
Abstract A comprehensive dynamic model of the monetary economy that produces the key characteristics of debt deflation has been presented recently by Steve Keen as an alternative to conventional approaches. His model is based on a double-entry bookkeeping methodology but lacks an acceptable profit theory. In this respect, it is not different from familiar approaches. Clearly, a deficient profit theory prevents a proper understanding of how the real-world economy works. The present paper takes an entirely different route and places the core of Fisher's debt-deflation theory into the context of the consistent structural axiomatic approach.
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.
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