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The Origin of Macroeconomics

Book Description

In the course of this work he corresponded with the Nobel prize winners Paul A. Samuelson and Robert M. Solow and that correspondence is reproduced in this book, prefaced by Professor Samuelson. This is a different macroeconomics. The key to Bernácer's pioneering thought is that financial speculation is the root cause of economic crises. With this thesis he anticipated the crisis we are now immersed in by almost a century, line by line, and concept by concept.

Table of Contents

  1. Presentation by José María Fernández Pirla
  2. Reading guidelines
  3. Original prologue by José Villacís From 1993
  4. Prologue by Paul A. Samuelson
  5. Prologue by Juan Velarde
  6. Prologue by José Villacís 2008
  7. Introduction
  8. 1 Part One: THE MARKET
    1. 1. Companies and domestic economies
      1. 1.1. Introduction
      2. 1.2. How money works
      3. 1.3. Say’s law
    2. 2. Capital
      1. 2.1. Introduction
      2. 2.2. A terminological and conceptual issue about capital
      3. 2.3. Classes of capital
        1. 2.3.1. Fixed capital
        2. 2.3.2. Working capital
      4. 2.4. Financing capital
      5. 2.5. Capitalisation
    3. 3. The market
      1. 3.1. Introduction
      2. 3.2. Production and supply on the market
      3. 3.3. The formation of demand
      4. 3.4. The role of money
      5. 3.5. A functional classification of money
    4. 4. Potential and actual demand
      1. 4.1. Introduction
      2. 4.2. Potential demand
      3. 4.3. Actual demand
      4. 4.4. Potential supply and actual supply
      5. 4.5. Market equilibrium and disequilibrium
      6. 4.6. Resales and realisations
        1. 4.6.1. The mathematical expression of market equilibrium
    5. 5. Market terms in mathematics
      1. 5.1. Introduction
      2. 5.2. The symbology
    6. 6. The axiomatic and the market: Production & consumption
      1. 6.1. Introduction
      2. 6.2. The axioms
      3. 6.3. Production & consumption
      4. 6.4. The consumption function for bernácer
  9. 2 Part Two: MONEY
    1. 7. Money
      1. 7.1. Introduction
      2. 7.2. Money
        1. 7.2.1. Disposable funds
        2. 7.2.2. The Theory
      3. 7.3. The two markets
      4. 7.4. The explanation of the theory
        1. 7.4.1. The Functional explanation of the theory
      5. 7.5. Active operations
      6. 7.6. Neutral operations
      7. 7.7. Active financial operations
      8. 7.8. Monetary equilibrium of the market
    2. 8. Macroeconomic terms for the market: global supply and demand
      1. 8.1. Introduction
      2. 8.2. Actual and potential supply and demand
        1. 8.2.1. Summary
      3. 8.3. Capitalisation and decapitalisation
      4. 8.4. The operation of capitalisation
      5. 8.5. Symbolic mathematical interpretation of the operation of capitalisation
      6. 8.6. Decapitalisation
    3. 9. Commodity currency
      1. 9.1. Introduction
      2. 9.2. Explanation
        1. 9.2.1. Symbolic-Mathematical Explanation of the Commodity Currency
    4. 10. Fiat money
      1. 10.1. Introduction
      2. 10.2. Fiat money in the theory of disposable funds
    5. 11. Foreign trade
      1. 11.1. Introduction
      2. 11.2. Foreign affairs in the theory of disposable funds
      3. 11.3. Operative technique
      4. 11.4. Balance and imbalance on the balance of payments
    6. 12. Interest
      1. 12.1. Introduction
      2. 12.2. Explication
      3. 12.3. Background and explanation of the origin of interest for bernácer
      4. 12.4. Interest and savings
      5. 12.5. The origin of savings
    7. 13. A psychological and monetary criticism of böhm-bawerk
    8. 14. Turgot: A discovery in the history of economic thought related to interest
    9. 15. Interest revisited
      1. 15.1. The profitability of capital
      2. 15.2. Risk, profitability and savings
      3. 15.3. Interest and time
        1. 15.3.1. Interest and the disposal of capital over time
      4. 15.4. Productivism
      5. 15.5. The insufficiency of savings
        1. 15.5.1. A serious mistake by Germán Bernácer
      6. 15.6. The cause of interest: errors
        1. 15.6.1. Keynes’ vicious circle
        2. 15.6.2. Equilibrium between productivity and interest
        3. 15.6.3. Interest in saving and interest from savings
      7. 15.7. Savings and capitalisation
        1. 15.7.1. Speculation
    10. 16. The financial market
      1. 16.1. Introduction
      2. 16.2. Requirement of financial operations
      3. 16.3. The market protagonists
        1. 16.3.1. The demand for income
        2. 16.3.2. The supply of income
      4. 16.4. Financial equilibrium or agreement
        1. 16.4.1. The one and only multifaceted financial market
      5. 16.5. Disposable funds or financial capital and actual capital
      6. 16.6. The capital goods market
        1. 16.6.1. Conditions for the existence of zero interest
        2. 16.6.2. The issue of net disposable funds
  10. 3 Part Three: THE CYCLES 2
    1. 17. The cycles
      1. 17.1. Introduction
      2. 17.2. The aetiology of crisis
      3. 17.3. A theoretical outline of crises
        1. 17.3.1. The design of crisis
        2. 17.3.2. Critical period
      4. 17.4. Equilibrium
        1. 17.4.1. Demand and the price of land
      5. 17.5. Land
      6. 17.6. Unemployment
        1. 17.6.1. Underconsumption and unemployment
        2. 17.6.2. Progress and misery
      7. 17.7. The explanation
      8. 17.8. The end of saving and unemployment
    2. 18. The dynamic of crisis in the theory of disposable funds
      1. 18.1. Introduction
      2. 18.2. Cycles and the system
      3. 18.3. The fall
      4. 18.4. The graphic representation of the flow of savings
      5. 18.5. The physiology of crisis
        1. 18.5.1. Boom and crisis
        2. 18.5.2. Gold
        3. 18.5.3. The gold standard and cycles
      6. 18.6. The journey of cycles
      7. 18.7. Pessimism
  11. 4 Part Four: ANALOGIES & DIFFERENCES WITH OTHER THEORIES
    1. 19. Analogies & differences
      1. 19.1. Introduction
      2. 19.2. The essential keynes and the transcendent in bernácer
        1. 19.2.1. Introduction
        2. 19.2.2. The explanation
      3. 19.3. Brief comment on the demand for money
        1. 19.3.1. Liquidity preference
        2. 19.3.2. Disposable funds and liquidity
        3. 19.3.3. The vicious circle of interest
      4. 19.4. Interest
      5. 19.5. Say’s law, without say and with keynes
      6. 19.6. The identities again
      7. 19.7. Bernácer’s criticism and defence of keynes
    2. 20. The great doubt
      1. 20.1. Introduction
      2. 20.2. The interpretation of doubt
      3. 20.3. The energy of suspicion
      4. 20.4. The invisible bridge of communication
    3. 21. Robertson
      1. 21.1. Introduction
      2. 21.2. Banking policy and price level
      3. 21.3. Robertson’s criticism of the theory of disposable funds
      4. 21.4. Robertson’s theory on loanable funds
      5. 21.5. Bernácer and Robertson’s theory on loanable funds
    4. 22. The bitter mexican controversy
      1. 22.1. The debate
      2. 22.2. Sáenz’ response to the keynesian syllogism
      3. 22.3. Forced equilibrium
      4. 22.4. Sáenz’ response to forced equilibrium
      5. 22.5. Prospective and retrospective
      6. 22.6. Sáenz’ response to prospective and retrospective
  12. 5 Part Five: MONETARY POLICY OR BERNACERIAN MONETARY REFORM OR RATIONAL UTOPIA
    1. 23. Monetary policy or rational utopia
      1. 23.1. The natural sanctity of work & divine punishment
      2. 23.2. The perfection of the system via the disappearance of the sin
      3. 23.3. The recovery of savings
      4. 23.4. Capitalist socialisation
      5. 23.5. The role of the state in capital formation
      6. 23.6. Property trade
      7. 23.7. Private property in the new regime
      8. 23.8. Companies’ financial techniques
      9. 23.9. Marshalling the monetary system
      10. 23.10. Private payments in the new system
      11. 23.11. Marx and Bernácer
      12. 23.12. The security of savings and capital
      13. 23.13. The financial market
      14. 23.14. War, demand and inflation
      15. 23.15. Taxes
      16. 23.16. Gold and stability
      17. 23.17. Emergency fiscal policy
    2. 24. The method
      1. 24.1. Introduction
      2. 24.2. Economics and psychology
      3. 24.3. Thoughts on ‘ex ante’ and ‘ex post’
      4. 24.4. Mathematics
      5. 24.5. The acceptance of mathematics
      6. 24.6. Accounting and statistics
      7. 24.7. On the mathematical method
  13. 6 Part Six: CONCLUSIONS OF THE WORK
    1. 25. Conclusions
  14. 7 Part Seven: THE LIFE AND WORK OF GERMÁN BERNÁCER
    1. 26. The life and work of Germán Bernácer
      1. 26.1. My inspiration
      2. 26.2. The early years in Alicante
      3. 26.3. Professional life in Alicante
      4. 26.4. His marriage and children
      5. 26.5. The move to Madrid
      6. 26.6. The civil war years
      7. 26.7. His works
      8. 26.8. The meeting
      9. 26.9. The twilight years
  15. Appendixes
    1. Appendix 1: Symbols and clarification of certain nomenclature
    2. Appendix 2: Dictionary of Bernacerian terms (or related terms)
    3. Appendix 3: Opinions on the functional doctrine of money by Germán Bernácer
    4. Appendix 4: General exposition of works by Bernácer, Keynes & others (chronologically)
    5. Appendix 5: Economic theories of Bernácer and Keynes: a general summary
  16. Bibliography
  17. Works by Germán Bernácer
    1. Index of titles
    2. Index of works by years
    3. Index by languages
    4. Articles in the press:
    5. Unpublished works:
    6. Non-economic works published:
  18. Works by josé Villacís González
    1. Books:
    2. Articles in the press
    3. Conferences
  19. General bibliography
    1. Works related to Germán Bernácer
    2. Introduction to a selection of the works of Germán Bernácer
    3. General bibliography with special interest
    4. Bibliography of Keynes
    5. Complementary bibliography
    6. Other bibliography
  20. Notas