Concordian economics and the economic bubble

Gorga, Carmine (2016): Concordian economics and the economic bubble. Published in: Econintersect , Vol. NA, No. Daily Internet newsletter (15 August 2016): NA-NA.

Abstract

In Concordian economics, a bubble is defined as a separation of monetary values from values of real wealth. This separation is effected by the fundamental proposition of Concordian economics: Investment is income minus hoarding. This definition, in turn, allows us to identify a set of crucial relationships that exist in the economic process, namely more hoarding, less investment and less growth; more hoarding, more inflation; more hoarding, more poverty.

• Item Type: MPRA Paper
• Language: English
• Keywords: A10, B40, B59, C18, D84, E01, E19, G01, K40
• Subjects: A - General Economics and Teaching > A1 - General Economics > A10 - General; A - General Economics and Teaching > A1 - General Economics > A19 - Other; B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B40 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B59 - Other; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C18 - Methodological Issues: General; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D84 - Expectations ; Speculations; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E19 - Other; G - Financial Economics > G0 - General > G01 - Financial Crises; K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K40 - General

References

Bartley, Robert L. “What's a 'Bubble,' Anyway?” Wall Street Journal, August 5, 2002, A11.

Gorga, Carmine. “The Dynamics of the Economic Process.” Unpublished manuscript, Polis-tics, Inc., Gloucester, MA, 2002a.

_____. The Economic Process: An Instantaneous Non-Newtonian Picture. Lanham, Md. and Oxford: University Press of America, 2002b. 2009. (The Somist Institute Edition, 2016).