Munich Personal RePEc Archive

The common error of common sense: an essential rectification of the accounting approach

Kakarot-Handtke, Egmont (2012): The common error of common sense: an essential rectification of the accounting approach.

[img]
Preview
PDF
MPRA_paper_43196.pdf

Download (280Kb) | Preview

Abstract

The present paper takes the explanatory superiority of the integrated monetary approach for granted. It will be demonstrated that the accounting approach could do even better provided it frees itself from theoretically ill-founded notions like GDP and other artifacts of the equilibrium approach. National accounting as such does not provide a model of the economy but is the numerical reflex of the underlying theory. It is this theory that will be scrutinized, rectified and ultimately replaced in the following. The formal point of reference is ‘the integrated approach to credit, money, income, production and wealth’ of Godley and Lavoie.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.