Essentials of Constructive Heterodoxy: Aggregate Demand

Abstract

Heterodoxy has left not one stone unturned and has unraveled a plethora of errors/mistakes/contradictions of Orthodoxy. The outcome of this prolonged critical and self-critical process is that there is actually no acceptable and accepted theoretical economics. The need of a paradigm shift is irrefutable. There is less need of further debunking exercises. For Constructive Heterodoxy follows that the subjective axiomatic foundation of Orthodoxy has to be replaced. All economic conceptions have to be consistently reconstructed. What comes to mind first are phenomena like market, profit, money, employment or aggregate demand. The latter is dealt with in the following.

Keywords: new framework of concepts, structure-centric, Structural Law of Supply and Demand, public debt, minimum profit, breakdown, Ricardian equivalence

JEL Classification: B59, E00