Posted to RWER Blog 11/07/2015

Correct. You can throw out virtually all of the delusion surrounding DSGE like rational expectations, marginalism etc. etc. We have a monetary economy and money is basically accounting which equally basically rules the micro-economy. Splashing around on the surface level of debits and credits will also tend to make things appear DSGE-like. What you want to do is go to the cost accounting level of any and all enterprises which is the 3 and 4 dimensional real, on the ground, empirical non-abstract level. There you will find the statistics to do the calculus on that will show economists where the disequilibrated state of our economies arises out of.

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