Macroeconomic Order from Microeconomic Chaos

Leiashvily, Paata (2021): Macroeconomic Order from Microeconomic Chaos. Published in: American Research Journal of Humanities and Social Sciences , Vol. 7, No. 1 (January 2021): pp. 1-15.

Abstract

In this article, the problem of self-organization of economic processes in conditions of perfect competition, based on the interaction of individual and social economic values and market prices, is considered. On the basis of dialectical analysis, the deep internal unity of production and consumption, supply and demand, utility and costs, and other categories that determine the functional closedness and integrity of economic system as a necessary condition to understand the formation process of a macroeconomic order from microeconomic chaos is shown. A new understanding of market processes’ self-regulation mechanism and economic optimization on the methodological basis of dialectics is given. The proposed theoretical explanation of economic processes makes it possible to create more adequate applied economic models and develop an effective economic policy.

• Item Type: MPRA Paper
• Language: English
• Keywords: dialectics, self-regulation, equilibrium, economic value, market prices, optimality criteria
• Subjects: A - General Economics and Teaching > A1 - General Economics > A10 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B40 - General; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D50 - General

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