Equilibrium, Order and Monetary Profits: Business Failure as a Vital Macroeconomic Need
Posted: 19 Dec 2009
Date Written: December 1, 2007
One of the oldest and most awkward conundrums of monetary theory concerns the realization and accumulation of profit in money terms for the aggregate of firms. This paper aims to show that an analysis based on a weak concept of equilibrium as ‘order’, capable of accounting for business failure as a vital macroeconomic phenomenon, can lead to the solution of this conundrum without recourse to any ad hocery.
Keywords: business failures, equilibrium, order, monetary theory of production, monetary circuit theory
JEL Classification: B50, E12, E19
Suggested Citation: Suggested Citation