Equilibrium, Order and Monetary Profits: Business Failure as a Vital Macroeconomic Need

Posted: 19 Dec 2009

See all articles by Marcello Messori

Marcello Messori

University of Rome Tor Vergata - Faculty of Economics

Alberto Zazzaro

Polytechnic University of Marche - Faculty of Economics

Date Written: December 1, 2007

Abstract

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

Messori, Marcello and Zazzaro, Alberto, Equilibrium, Order and Monetary Profits: Business Failure as a Vital Macroeconomic Need (December 1, 2007). Rivista Italiana degli Economisti, Vol. 3, December 2007, Available at SSRN: https://ssrn.com/abstract=1525808

Marcello Messori (Contact Author)

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy

Alberto Zazzaro

Polytechnic University of Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

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