Correct, it is a tautology. As already demonstrated, the concepts are illegitimate. Thus the tautology says nothing. Essentially it is nonsense.

Would 2+2=4 be a tautology if the concept of number were illegitimate? Does 2+2=4 say nothing? Is 2+2=4 nonsense?

Since the concept of numbers are not illegitimate, the question is irrelevant. This contrasts with Fisher’s tautology, which bases itself upon concepts, Velocity and the aggregate price level, which are both illegitimate concepts.

The financial markets seem to have very little to teach about economic realities – which is hardly surprising if they are as random as you claim.

That wasn’t my argument at all. My argument was that the financial markets teaches the individual to cleave to, and search for the truth. The reason is glaringly obvious I would have thought; that faith in fallacy tends to prove highly unprofitable. This of course really only applies to those that trade on a macro/micro economic basis. Daytraders of course are savages, many don’t even know the company behind the ticker

As for my ‘investment’, it’s probably rather less than you seem to think.

Of course that is entirely possible, and I’m quite willing to accept your assessment on that. However it seems then rather odd that you would write a book based on anything other than your values [in economic theory], unless it were a say a history of economics, which from your blog does not seem to be the case.

As to teaching; so you would teach a curriculum that you personally did not value? If you did, surely that would create some ethical issues?

If you want to challenge standard economic thinking – and it certainly needs challenging – you have to understand concepts as they are currently used and measured, whether you think they are legitimate or not. There is no point in dismembering Fisher, just because you’ve read something garbled on Wikipedia. Thousands of papers on these concepts have been written since. And most of them will be perfectly logically consistent – they wouldn’t have been published otherwise. Intellectual rigour is plentiful.

Fisher was flawed right out of the box. When it’s wrong, it’s wrong. Nothing can be done to save it.

So you underestimate economists if you think their thinking is as self-serving as you suppose. Their errors are almost entirely in their unthinking initial assumptions (their axioms!) – which for the most part are much closer to the sort of assumptions you make about the outcome of ‘free markets’ than are mine.

I remain unconvinced.

Embrace neoclassical economics – it really is your friend! (But not mine.)

I think I’ll likely pass on that. This is part of the problem.

Advertisements