CONTRADICTIONS IN ECONOMIC THEORY AND THE ECONOMIC MODELLING OF THE MODERN ECONOMY

Hasse Ekstedt
Additional contact information
Hasse Ekstedt: University of Gothenburg

Review of Socio - Economic Perspectives, 2016, vol. 1, issue 1, 2-43

Abstract: In this paper we analyse the problem of projection of the reality into mathematical logical analysis modelling. The primary focus is on the neoclassical theory as the most refined economic theory and we scrutinize the axiomatic structure with respect to the underlying conceptualizations. The problem of aggregation in equilibrium and disequilibrium is analysed with particular reference to barter economy, which is underlying the neoclassical approach, and the modern money economy, where money is to be seen as a disequilibrium concept. As a result of the analysis two Theorems are derived, one for the neoclassical barter approach and one for the money economy, which contradicts each other. The discussion of money is enlarged to the current institutional changes on the financial markets from a monetarist reign to a Real Bill approach, which is opposite to the movement during the early 19th century which resulted in Ricardos Ingot Plan and the Bank Charter Act of 1844 when the monetarist approach more or less was institutionalized. An evident methodological result of our analysis is that the neoclassical thinking cannot be applied to the modern money economy and furthermore that Keynes analysis (not Keynesian), including his works on probability and philosophy, cannot be moulded into a neoclassical setting, since the two modes of thinking are contradictive in terms.

Keywords: Equilibrium; Disequilibrium; Axiomatic Structures; Money; Finance (search for similar items in EconPapers)
JEL-codes: B12 B13 B41 C62 D50 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://reviewsep.com/my_documents/my_files/7_Hasse%20Ekstedt_METIN.pdf (application/pdf)
https://reviewsep.com/?page_id=235 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aly:journl:201601

Access Statistics for this article

Review of Socio - Economic Perspectives is currently edited by Veysel KAYA

More articles in Review of Socio - Economic Perspectives from Reviewsep
Bibliographic data for series maintained by Veysel KAYA ().