The Ideal Economy: A Prototype

Egmont Kakarot-Handtke ()

MPRA Paper from University Library of Munich, Germany

Abstract: 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 by 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.

Keywords: new framework of concepts; structure-centric; axiom set; consumption economy; Profit Law; directed random changes; complexity; simulation; market clearing; budget balancing; product market; labor market (search for similar items in EconPapers)
JEL-codes: B59 C63 E19 (search for similar items in EconPapers)
Date: 2013-11-19
New Economics Papers: this item is included in nep-mac
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