The Logical Interface Between Objective Macrofoundations and Subjective Valuations

Abstract

Economists never managed to consistently integrate micro- and macroeconomics. Walrasian economics is built upon microfoundations. These consist of patently absurd subjective-behavioral assumptions. Keynesian economics is built upon objective-structural macrofoundations. These are algebraically defective. Both approaches get the foundational economic concept of profit wrong. Because the axiomatic foundations are provably false, the whole analytical superstructure of economics is scientifically worthless. The present paper starts with the correct macrofoundations and determines the logical interface between objective market price and the multitude of subjective valuations.

Keywords: new framework of concepts, structure-centric, axiomatization, microfoundations, macrofoundations, paradigm shift

JEL Classification: B13, B16, B21, B22, B41, D10, D40, D46, E20, E30