Category Archives: Toward a General Theory of Pricing

On ‘Coherence’ in Asset Markets: Everything is Going According to Plan

The author of the Philosophical Economics blog has a post up that caught my attention on the supply and demand dynamics of asset markets. It caught my attention because it looked, at first, very similar to my own dissertation that … Continue reading

Posted in Economic Theory, Media/Journalism, Psychology, Toward a General Theory of Pricing | 16 Comments

Is the Speculative or the Precautionary Demand for Money More Important in Real World Capital Markets?

In Keynes’ General Theory is is famously stated that the demand for money relies on three distinct functions. These are: the transactions demand for money; the precautionary demand for money; and the speculative demand for money. Or, more formally: M … Continue reading

Posted in Economic Theory, Toward a General Theory of Pricing | 12 Comments

Basic Macroeconomics of Income Distribution Cannot Explain Today’s Rising Inequality

I was recently looking over the debates surrounding the Pasinetti theorem and I thought it might be worth writing a few words on it. Pasinetti formulated his theorem — which is dealt with in detail in a fantastically thorough Wikipedia … Continue reading

Posted in Economic History, Economic Policy, Economic Theory, Toward a General Theory of Pricing | 37 Comments

The Theory of the Monetary Circuit: A Critique

In a series of comments on my previous post involving myself, Neil Wilson and Oliver it became clear quite quickly how closely my asset-pricing framework is tied up with the Post-Keynesian theory of endogenous money. Oliver suggested that I look … Continue reading

Posted in Economic Theory, Toward a General Theory of Pricing | 17 Comments

Laying a Solid Foundation for My Theory of Asset-Pricing

In the comments my previous post concerning my theory of asset prices – comments that have, I should add, been extremely productive so far – Nick Edmonds raised some questions as to whether I was dealing with stocks and flows. … Continue reading

Posted in Economic Theory, Toward a General Theory of Pricing | 15 Comments

Changes Versus Levels in My Asset Pricing Theory

In my previous post a commenter, ivansml, made a point about one of the first equations in my paper. He was discussing the following equation, Ivansml pointed out that this was problematic because in order for the change in price … Continue reading

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Considerations of the Relationship Between Price Elasticities and Expectations in Price Formation

As I have already written in my introduction just after I had sent off the final draft of my paper I noticed a rather glaring error. This error can be best understood by comparing equation 1.10 and equation 2.10 from … Continue reading

Posted in Economic Theory, Toward a General Theory of Pricing | 40 Comments