Persistent financial dislocations have now caused the real economy to become, in itself, a source of potential disruption.
Disruption of what? surely the real economy is the playing field we're all on so it's a disruption to somebodies wishful thinking economics. Any idiot can face a crisis - it's day to day living that wears you out.
(And the fiction that such a thing exists is part and parcel of the fiction that the economy is something other than a social subsystem.
Because the actual economy is a monetary production economy. To set up a model that emulates our economy, but where monetary aggregates do not matter in their own right, its necessary to have more information input from the future that we don't actually have, and to have synchronization between markets that we don't actually have, and for markets for goods and services and labor to be actual organized markets, and not just sets of transactions described as markets as a loose analogy.
Since you need a bunch of stuff that is not so, in order to remove the impact of aggregate monetary values in their own right, that means that in the real world, money is not neutral, and so in the real world, monetary institutions are part of the actual economy.
So there is no such thing as a "real" economy in the marginalist economist's sense of the term ... not among the monetary production economies of the world, at any rate. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
Indeed,, pretending that there is a real economy distinct from the monetary economy does an excellent job of confusing the effort to distinguish between speculation and prudent financial investment, because that is a distinct that is within the financial sector.
Appealing to a fictitious realm to try to make the distinction does not help matters, because the con artists rationalizing the speculation when it helps them garner a larger share of a nation's income tend to be skilled at creating fictions. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
The distinction is not between the "real economy" and the "financial economy" - rather, it is between the "making stuff" economy and the "making bets" economy. And the shell game is that parts of the financial sector are in the former, and parts of the non-financial sector are probably in the latter.
The finance sector makes an excellent servant for a monetary production economy, and an egregious master. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
Kind of "attack them where you are weakest", marginalist economics claiming ownership of the term "real". I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
... what you're saying is that there are few principled reasons to ...
No, I am saying that the principle that marginalist economists try to use as a foundation for the distinction is a load of bullshit.
Its not as if marginalist economists represent all economics ... fortunately, since this issue is outside the scope of their analytical toolkit. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
yup, it's just an avatar economy! a desktop icon, not the application!
they made the lead of an economy tied to the real world into the gold of their 'second life' 3d artefact, where numbers cuddle and multiply in the test tube of their imaginations, untied to such gross concepts as resources, externalities, er hello!, just because it's outside your tinted limo window doesn't mean it's not happening, let alone concern to a future human existence of any quality on this planet, or for any of the doomed denizens who can't afford the comfort-buffer.
2-year-olds have more sense!
the media didn't see it coming... they were paid to turn a blind eye. ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
Great line, melo!
I wish I had said that
<you will, Chris, you will> "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
