27 Pages Posted: 17 Nov 2013 Last revised: 8 Jun 2014
Date Written: November 16, 2013
Standard economics starts with behavioral assumptions that are formally expressed as axioms. This approach met with little scientific success but still enjoys some popularity for lack of a convincing alternative. To replace the subjective formal foundations by objective structural axioms is the first task of this paper. To give a correct account of how the monetary economy works is the second. This entails an explanation of the continuous clearing of both the product and the labor market in the random consumption economy, that is, of how the economy could establish ongoing full employment and price stability in principle.
Keywords: new framework of concepts, structure-centric, axiom set, consumption economy, Profit Law, directed random changes, complexity, simulation, market clearing, budget balancing, product market, labor market
JEL Classification: B59, C63, E19
Suggested Citation: Suggested Citation