The common error of common sense: an essential rectification of the accounting approach

Kakarot-Handtke, Egmont

The common error of common sense: an essential rectification of the accounting approach

MPRA Paper from University Library of Munich, Germany

Abstract: The present paper takes the explanatory superiority of the integrated monetary approach for granted. It will be demonstrated that the accounting approach could do even better provided it frees itself from theoretically ill-founded notions like GDP and other artifacts of the equilibrium approach. National accounting as such does not provide a model of the economy but is the numerical reflex of the underlying theory. It is this theory that will be scrutinized, rectified and ultimately replaced in the following. The formal point of reference is ‘the integrated approach to credit, money, income, production and wealth’ of Godley and Lavoie.

Keywords: new framework of concepts; structure-centric; axiom set; primacy of theory; income; profit; distributed profit; money; flow; residual; transaction matrix; general complementarity (search for similar items in EconPapers)
JEL-codes: B41 E01 (search for similar items in EconPapers)
Date: 2012-08-20
New Economics Papers: this item is included in nep-acc, nep-hme, nep-hpe and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: The Common Error of Common Sense: An Essential Rectification of the Accounting Approach (2012)
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