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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
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
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
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 assetpricing framework is tied up with the PostKeynesian theory of endogenous money. Oliver suggested that I look … Continue reading
Laying a Solid Foundation for My Theory of AssetPricing
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
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
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