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http://www.levyforecast.com/assets/Profits.pdfThis paper is why I've always found Egmont's comments confusing, he makes it seem like such a mystery.
Of course, there could easily be more to it which I'm missing.
An implication free theory is the greatest mystery of all ;)
francoThe paper you refer to (Levy et al., 2008) indeed addresses the fundamental issue of economics ‘Where Profits Come From’ but gives the wrong answer. For the formal refutation of the Levy approach see the working paper ‘Keynes’s Missing Axioms’ (2011b)For the correct explanation see ‘The Emergence of Profit and Interest in the Monetary Circuit’ (2011a).The lethal error/mistake/blunder of the Levy approach consists in starting with Saving = Investment (2008, p. 6).For the most elementary explanation of why Saving = Investment has ALWAYS been false and of why Saving = Loss resp. Dissaving = Profit is true see (2015).*Egmont Kakarot-HandtkeReferencesKakarot-Handtke, E. (2011a). The Emergence of Profit and Interest in the Monetary Circuit. SSRN Working Paper Series, 1973952: 1–22. URL http://ssrn.com/abstract=1973952Kakarot-Handtke, E. (2011b). Keynes’s Missing Axioms. SSRN Working Paper Series, 1841408: 1–33. URL http://ssrn.com/abstract=1841408Kakarot-Handtke, E. (2015). How the Intelligent Non-Economist Can Refute Every Economist Hands Down. SSRN Working Paper Series, 2705395: 1–6. URLhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=2705395Levy, D. A., Farnham, M. P., and Rajan, S. (2008). Where Profits Come From. pages 1–28. URL http://www.levyforecast.com/assets/Profits.pdf* See also cross-references ‘Refutation of I=S’http://axecorg.blogspot.de/2015/01/is-cross-references.htmland in particular ‘The final implosion of MMT’http://axecorg.blogspot.de/2016/10/the-final-implosion-of-mmt.html
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