The Calculating Auctioneer, Enlightened Wage Setters, and the Fingers of the Invisible Hand
23 Pages Posted: 11 Mar 2013 Last revised: 22 May 2015
Date Written: March 9, 2013
The formal foundations of theoretical economics must be nonbehavioral and epitomize the interdependence of real and nominal variables that constitutes the monetary economy. This is a cogent conclusion from the persistent collapse of behavioral and real models. Conceptual rigor demands, first, to take objective-structural axioms as a formal point of departure and, secondly, to clarify the interrelations of the fundamental concepts income and profit. The present paper reconstructs the characteristic properties of a Walrasian economy in structural axiomatic terms, generalizes them and explores the consequences for our understanding of the working of the economy we happen to live in.
Keywords: new framework of concepts, structure-centric, axiom set, analytical rigor, market clearing, budget balancing, harmonic structure, deflationary bias
JEL Classification: D01, D46, D51
Suggested Citation: Suggested Citation