Capitalism - Money Interest and Assets

Table of Contents

Background

Introduction

Methodology

Chapter 1

Literature Review with the Macro-facts

Mercantilism

Physiocracy

Classical Economics

Say’s Law

Neoclassic and Marginalist School

Marxist School

Keynesian Economics

The theory of Keynes

The theoretical framework of Keynes theory

Monetarism

Equation of exchange and velocity of money

The quantity theory of money and prices

Towards the end of Chapter 1

Chapter 2

Some evidence for microeconomic inefficiencies

Unemployment, Price (in)stability and Business cycles

Inflation vs. Deflation

The Phillips Curve

The non-accelerating inflation rate of unemployment (NAIRU)

Chapter 3

The ‘Free’ Analysis for the prevalence of inefficiencies

The investment decision

Money and its different definitions

What happens if money fails to deliver one of these functions?

Interest and Compound Interest

Growing Financial Assets

Chapter 4

An evaluation of macroeconomic consequences

Growing societal pressures

The ‘Story of Stuff’

Governments and their debts

Capitalistic, shifting and non-capitalistic economies

The current financial crisis and business cycles

The Discussion

Some ideas for the future

Research Objectives and Themes

The dissertation aims to analyze inherent inconsistencies within the macroeconomic framework by evaluating mainstream and non-mainstream schools of thought. It investigates how capitalistic structures, particularly regarding money, interest rates, and financial assets, contribute to microeconomic inefficiencies and macroeconomic instability, ultimately providing practical implications for future economic improvements.

• Comparison of mainstream macroeconomic theories and the heterodox "free economy" approach.
• Evaluation of microeconomic inefficiencies such as inflation, deflation, and unemployment.
• Investigation of the relationship between interest-driven redistribution and the growing wealth gap.
• Analysis of the environmental and societal consequences of growth-dependent capitalist systems.
• Examination of the role of money as a store of value versus a means of exchange in modern financial crises.

Excerpt from the Book

Summary of Chapters

Chapter 1: Provides a historical literature review of macroeconomic schools of thought, ranging from Mercantilism and Classical Economics to Keynesianism and Monetarism, identifying their inherent "blind spots."

Chapter 2: Analyzes microeconomic inefficiencies such as inflation, deflation, and unemployment, exploring why these stabilization processes are prevalent in modern capitalist economies.

Chapter 3: Utilizes the heterodox "free economy" approach to analyze the prevalence of inefficiencies, focusing on investment decisions, the definitions of money, interest rates, and the growth of financial assets.

Chapter 4: Evaluates macroeconomic consequences, including income disparities, environmental pressures, and the role of government debt, supported by primary empirical research.

Keywords

Capitalism, Macroeconomics, Money, Interest Rate, Financial Assets, Inconsistencies, Free Economy, Redistribution, Inflation, Deflation, Unemployment, Economic Growth, Business Cycles, Wealth Accumulation, Debt.

Frequently Asked Questions

What is the primary focus of this dissertation?

The work focuses on analyzing inherent inconsistencies within the modern macroeconomic framework, particularly how capitalism and its reliance on interest and growth lead to systemic failures.

What are the central thematic fields explored?

The central themes include the evolution of economic schools of thought, the mechanics of money and interest rates, income redistribution, and the long-term sustainability of capitalistic growth.

What is the primary research question?

The dissertation seeks to prove that macroeconomic instabilities are not random but are systematic results of the current incorporation of capitalism into the macroeconomic framework, specifically through the mechanisms of money and interest.

Which scientific methodology is applied?

The study employs a mixed-method approach, primarily using secondary source research to develop theory, supplemented by quantitative data from a questionnaire conducted with 15 members of the "Initiative for a Natural Economic Order."

What topics are covered in the main body?

The main body covers historical economic theories, evidence of microeconomic inefficiencies (unemployment/inflation), the "free economy" critique of money and interest, and broader macroeconomic consequences like wealth concentration and global financial crises.

Which keywords best characterize this work?

Key terms include Capitalism, Macroeconomics, Money, Interest Rate, Financial Assets, Economic Growth, and redistribution.

How does the author define the "monetary spiral"?

The author describes it as a cycle where financial assets grow disproportionately to real GDP, necessitating constant credit expansion, which leads to increased indebtedness for the state, enterprises, and households.

What is the significance of the "Josephs-pfennig" example?

It illustrates the exponential nature of compound interest and its potential to grow indefinitely, which the author argues stands in stark contrast to the finite resources of the Earth.