Epstein Secrets

duced from retained earnings within companies. For many economists, somewhat oddly, this will be seen as a serious flaw. Since at least the time of Keynes, investment and saving have been at the heart of macroeconomic modelling, and this is true of neo-classical and other heterodox modelling, not just

o produce a simple Lotka-Volterra macroeconomic model. This basic model generates endogenous boom and bust business cycles of the sort described by Minsky and Austrian economists. From this model an exact formula for the Bowley ratio; the ratio of returns to labour to total returns, is derived. This f

loyment is higher in model 46 than model 4A. Also the ratio of returns to labour to returns to capital is significantly higher in model 4A. This is Keynes writ large. Unlike static equilibria, dynamic equilibria can have multiple points of stability. The point of equilibrium that is reached depends on

al unproductive. This then generates a downswing of declining wealth, consumption and wages. This is the normal cycle of capitalism as described by Minsky and the Austrians. Booms and busts are endogenous. Free markets are not inherently stable. Again, as with the income and company models it noticeab

the players know that it is the Old Maid which is circulating, or that when the music stops some of the players will find themselves unseated." 3M Keynes [Keynes 1936] The following is a brief review of current research and emerging ideas within the field of liquidity. This section is something of a

ge payments to rents. The macroeconomic models in section 4 above suggest that liquidity can be formed endogenously, in exactly the way proposed by Minsky. This suggests that, just as central banks are expected to control changes in the money supply caused by fractional reserve banking, it seems appro

ooking back on his formative years, before Europe was ground up in the First World War, the powerfully brilliant and sensitive economist John Maynard Keynes bitterly recalled the iron certainty of his set of friends and their confident, diffident arrogance: “We were not aware that civilization was a thin

ons of a human mind,” Hillis wrote at the start of his PhD thesis a few years later. “A thinking machine.”188 What Hillis and others like his mentor Marvin Minsky, realized was that the human brain works differently than machine logic. Life, after all, is not a series of linear math problems. (Much as we might

ods is largely automated, as are many services. What’s left for humans to do? In 1930—long before the advent of computers, let alone AI—John Maynard Keynes wrote, in an essay called “Economic Possibilities for our Grandchildren,” that as a result of improvements in productivity, society could produce all

the 1955 proposal thought to be the first printed usage of the phrase “artificial intelligence,” computer scientist John McCarthy and his colleagues Marvin Minsky, Nathaniel Rochester, and Claude Shannon conjectured that “every aspect of learning or any other feature of intelligence can in principle be so preci

ods is largely automated, as are many services. What’s left for humans to do? In 1930—long before the advent of computers, let alone AI—John Maynard Keynes wrote, in an essay called “Economic Possibilities for our Grandchildren,” that as a result of improvements in productivity, society could produce all

the 1955 proposal thought to be the first printed usage of the phrase “artificial intelligence,” computer scientist John McCarthy and his colleagues Marvin Minsky, Nathaniel Rochester, and Claude Shannon conjectured that “every aspect of learning or any other feature of intelligence can in principle be so preci