Epstein Secrets

The physiocrats were also correct in their belief that land can provide value, in its role in capturing the sun's rays. Where Smith, Marx, Ricardo, Sraffa etc were correct was in their belief that value is an inherent quantity, embodied in the goods and services in the economy. However, as was found a

ply balances to equal the above demand, where supply costs of commodities are calculated by aggregating costs of inputs on a cost plus basis, as per Sraffa, (un-reconstituted) von Neumann, market-microstructure and post-Keynesian analyses, but done on a dynamic equilibrium basis. At this level, price

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

clear that the models were modelling the economics of the classical economists; the economics of Smith, Ricardo, Marx, von Neumann (unmodified) and Sraffa. With hindsight this turned out to be a consequence of the second of the two original models I had proposed in 2006. In this model wealth is implic

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

n economics had been systematically disproved by neoclassical economics. More reading of economics quickly proved the second assumption to be false, Sraffa was the victor of the Cambridge capital controversies. The labour theory of value is indeed nonsense. However the concept of absolute value is not

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