Essentials of Constructive Heterodoxy: Money, Credit, Interest

19 Pages Posted: 27 Feb 2015 Last revised: 10 Apr 2015

Egmont Kakarot-Handtke

University of Stuttgart - Institute of Economics and Law

Date Written: February 25, 2015

Abstract

The goal of theoretical economics is to explain how the monetary economy works. The fatal methodological defect of Orthodoxy is that it is based on behavioral axioms. Yet, no specific behavioral assumption whatever can serve as a starting point for economic analysis. From this follows for Constructive Heterodoxy that the subjective axiomatic foundations have to be replaced. This amounts to a paradigm shift. Nobody can rest content with a pluralism of false theories. Based on a set of objective axioms all economic conceptions have to be reconstructed from scratch. In the following this is done for the theory of money.

Keywords: new framework of concepts, structure-centric, Structural Law of Supply and Demand, stock of money, monetary profit, transaction unit, banking unit

JEL Classification: B59, E10

Suggested Citation

Kakarot-Handtke, Egmont, Essentials of Constructive Heterodoxy: Money, Credit, Interest (February 25, 2015). Available at SSRN: https://ssrn.com/abstract=2569663 or http://dx.doi.org/10.2139/ssrn.2569663

Egmont Kakarot-Handtke (Contact Author)

University of Stuttgart - Institute of Economics and Law ( email )

Keplerstrasse 17
Stuttgart
Germany

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