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The 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-Handtke
References Kakarot-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=1973952 Kakarot-Handtke, E. (2011b). Keynes’s Missing Axioms. SSRN Working Paper Series, 1841408: 1–33. URL http://ssrn.com/abstract=1841408 Kakarot-Handtke, E. (2015). How the Intelligent Non-Economist Can Refute Every Economist Hands Down. SSRN Working Paper Series, 2705395: 1–6. URL http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2705395 Levy, 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.html and in particular ‘The final implosion of MMT’ http://axecorg.blogspot.de/2016/10/the-final-implosion-of-mmt.html
http://www.levyforecast.com/assets/Profits.pdf
ReplyDeleteThis 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.
ReplyDeleteAn implication free theory is the greatest mystery of all ;)
ReplyDeletefranco
ReplyDeleteThe 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-Handtke
References
Kakarot-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=1973952
Kakarot-Handtke, E. (2011b). Keynes’s Missing Axioms. SSRN Working Paper Series, 1841408: 1–33. URL http://ssrn.com/abstract=1841408
Kakarot-Handtke, E. (2015). How the Intelligent Non-Economist Can Refute Every Economist Hands Down. SSRN Working Paper Series, 2705395: 1–6. URL
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2705395
Levy, 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.html
and in particular ‘The final implosion of MMT’
http://axecorg.blogspot.de/2016/10/the-final-implosion-of-mmt.html