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Essentials of Constructive Heterodoxy: Financial Markets

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  • Kakarot-Handtke, Egmont

Abstract

What stands before all eyes as failed Orthodoxy is ultimately caused by the wrong answer to Mill's Starting Problem. It is now pretty obvious that one cannot put utility maximization, equilibrium, well-behaved production functions, ergodicity or any other physical or psychological or sociological or behavioral assumption into the premises. No way leads from such premises to the explanation of how the actual market economy works. The logical consequence is to discard them. Having first secured a superior formal starting point, the present paper addresses the question of how the various types of financial markets emerge from the elementary monetary circuit.

Suggested Citation

  • Kakarot-Handtke, Egmont, 2015. "Essentials of Constructive Heterodoxy: Financial Markets," MPRA Paper 64426, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:64426
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    File URL: https://mpra.ub.uni-muenchen.de/64426/1/MPRA_paper_64426.pdf
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    References listed on IDEAS

    as
    1. L. Randall Wray, 2002. "State Money," International Journal of Political Economy, Taylor & Francis Journals, vol. 32(3), pages 23-40.
    2. Kakarot-Handtke, Egmont, 2013. "Confused confusers. How to stop thinking like an economist and start thinking like a scientist," MPRA Paper 44046, University Library of Munich, Germany.
    3. Hassan Bougrine & Mario Seccareccia, 2002. "Money, Taxes, Public Spending, and the State Within a Circuitist Perspective," International Journal of Political Economy, Taylor & Francis Journals, vol. 32(3), pages 58-79.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    new framework of concepts; structure-centric; Law of Supply and Demand; Profit Law; IOU; complementarity of retained profit and saving; securities; bonds; common stock; mortgages; consumer financing;
    All these keywords.

    JEL classification:

    • B49 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Other
    • B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
    • E19 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Other
    • G00 - Financial Economics - - General - - - General

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